THE HAGUE, Netherlands — European Union regulators on Monday levied a record-breaking 550 million euro fine — roughly $629 million — against Chinese online shopping platform AliExpress, saying the company failed to do enough to prevent dangerous and counterfeit items from being sold through its site.
The penalty is the largest ever handed down under the EU’s Digital Services Act, which governs how large online platforms operate within the 27-member bloc. It follows a 200 million euro fine issued just months ago against another online retailer, Temu, for similar violations. Last year, Brussels penalized Elon Musk’s social media platform X with a $120 million fine.
Henna Virkkunen, the commission’s executive vice-president for tech sovereignty, security and democracy, made clear that the size of a platform is no excuse for failing to protect shoppers. “The spread of counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal and harmful products is not an unavoidable cost of shopping online — it is a failure by AliExpress to comply with its obligations under the Digital Services Act,” she said in a statement.
She added: “Scale is not an excuse; risks must be identified and addressed systematically to ensure consumers can safely shop online. Today, we are holding AliExpress to this standard and request it to take action.”
In a response sent to the Associated Press, AliExpress pushed back, saying the company “has been, and continues to be, firmly committed to meeting our obligations” since the Digital Services Act took effect, and that it has “invested substantial resources in risk assessment and mitigation, product safety and consumer protection.”
The company also called the penalty excessive, stating it disagreed with the “disproportionate fine, which does not adequately reflect our established framework and the significant, proactive enhancements we have made. We are carefully reviewing the decision and considering all available options.”
Regulators said the fine covers the company’s conduct up through at least June 2025, when the commission issued a preliminary ruling that AliExpress was falling short of its legal duties — and when the company agreed to make improvements to its systems. AliExpress now has until October 20 to submit a formal action plan outlining how it will fix the problems identified.
The Digital Services Act is designed to protect internet users across Europe, targeting harmful and illegal content — including materials promoting genocide or eating disorders — while also safeguarding fundamental rights such as privacy and free expression.
Monday’s announcement comes less than three weeks after AliExpress’s parent company, Chinese technology giant Alibaba, agreed to pay $600 million to settle a dispute with the U.S. government. That case involved allegations that the Hangzhou-based company sold and imported illegal pharmaceuticals, controlled substances, regulated chemicals, and pill-making equipment into the United States.
