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AliExpress Fined 550 Million Euros by European Commission Over Illegal Products

by Leo Müller
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AliExpress Fined 550 Million Euros by European Commission Over Illegal Products

AliExpress fined €550 million by EU over failure to curb illegal products

EU issues €550m AliExpress fine under the Digital Services Act for unsafe, counterfeit and illegally sold goods on its marketplace.

Commission issues record €550 million penalty

The European Commission has fined AliExpress €550 million for breaching the Digital Services Act (DSA), finding the platform failed to prevent the sale and spread of illegal and unsafe products in the EU.
The decision, announced by major news outlets on 20 July 2026, represents the largest sanction imposed so far under the DSA framework. (elpais.com)

Commission cites weak controls and recommendation systems

Investigators concluded that AliExpress had too few moderation staff relative to its workload and that its automated recommendation and advertising systems amplified illegal listings.
The Commission said numerous items — including counterfeit goods, unsafe toys and hazardous cosmetics — remained available online for weeks after being detected. (elpais.com)

EU finds gaps in risk assessment and sanctions enforcement

Brussels found that AliExpress did not adequately assess or mitigate systemic risks posed by its service and failed to enforce penalties against sellers of illegal products.
The Commission attributed €110 million of the fine to deficient risk assessment and €440 million to inadequate mitigation measures, according to reporting on the case. (elpais.com)

Past commitments and ongoing scrutiny

AliExpress had previously offered binding commitments under the DSA in June 2025 to strengthen verification, notice-and-action procedures, and transparency for ads and recommender systems.
Those commitments addressed some aspects of the probe, but the Commission’s formal investigation launched in March 2024 continued to find breaches in how the platform managed illegal-product risks. (digital-strategy.ec.europa.eu)

Regulatory context and comparisons with other DSA fines

The AliExpress penalty follows earlier enforcement actions under the DSA, including a €200 million fine against Temu in May 2026 and a €120 million sanction against X for transparency breaches.
Commission officials and EU press coverage have framed the AliExpress decision as part of a broader push to hold very large online platforms accountable for consumer safety and systemic risk. (digital-strategy.ec.europa.eu)

What the Commission requires next from AliExpress

Alongside the fine, the Commission has told AliExpress to present a concrete plan to address the remaining gaps the probe identified and to demonstrate how it will prevent recurrence.
The DSA allows the Commission to impose further coercive measures and fines if platforms do not comply with remedial orders or fail to submit satisfactory action plans. (digital-strategy.ec.europa.eu)

Industry and consumer implications

The ruling signals heightened enforcement risks for global e‑commerce platforms that operate in the EU market and rely on automated systems to moderate vast catalogs.
Retailers, market analysts and consumer groups are likely to scrutinize how online marketplaces balance scale, automation and human oversight in order to satisfy EU safety and transparency rules. (euronews.com)

The Commission’s penalty aims to deter platforms from under-resourcing content moderation and risk management, and it underscores the DSA’s teeth for Very Large Online Platforms.
AliExpress will face close monitoring of any remedial measures it proposes, and the decision is expected to sharpen compliance expectations across the sector.

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