The European Commission imposed a fine of 550 million euros ($629 million) on Chinese online marketplace AliExpress. The penalty addresses the platform’s failure to effectively manage the sale of unsafe and counterfeit products. It marks the largest fine to date under the European Union’s Digital Services Act (DSA). This action follows a recent similar penalty of 200 million euros against another retailer, Temu.

Henna Virkkunen, executive vice-president for tech sovereignty, security, and democracy, stated: The spread of counterfeit clothing, unsafe toys, dangerous cosmetics, and other illegal products is a failure by AliExpress to comply with obligations under the DSA. Scale is not an excuse; risks must be identified and addressed systematically to ensure safe online shopping.

In response, AliExpress communicated its disagreement with the fine, citing it as disproportionate despite their commitment to compliance since the DSA’s implementation. The company emphasized investments in risk assessment and consumer protection and is considering its options moving forward.

The fine concerns the period up to at least June 2025, when the commission’s preliminary ruling indicated that AliExpress fell short in tackling illegal sales. The company now has until October 20 to present an action plan detailing measures to address systemic risks.

The Digital Services Act aims to safeguard online users and halt the distribution of harmful or illegal content, thus protecting privacy and free speech. This fine comes shortly after Alibaba, AliExpress’ parent company, settled a dispute with the U.S. government for $600 million over illegal pharmaceutical sales.