EU Imposes €550 Million Fine on AliExpress for Selling Illegal and Dangerous Products
EU fines AliExpress €550 million over weeks-long listing of counterfeit clothes, unsafe toys and hazardous cosmetics that regulators say endangered consumers.
The European Commission announced a €550 million penalty against AliExpress, saying the online marketplace repeatedly failed to remove counterfeit and dangerous items sold by third-party vendors. The AliExpress fine follows a probe that found fake clothing, unsafe toys and hazardous cosmetics remained available to European consumers for weeks, the Commission said.
Commission Details Products Left on Platform
The EU executive flagged a range of product categories that were not taken down promptly, including counterfeit garments, toys that did not meet safety standards, and cosmetics containing potentially harmful ingredients.
Commission officials said these listings persisted despite warnings and enforcement actions, and that enforcement measures by the platform were insufficient to protect EU consumers. A Commission spokesperson added that recommendation systems had also pushed nearly 15 million prohibited items to users in the EU.
Platform Procedures Found Lacking
Investigators concluded AliExpress did not allocate sufficient staff or time to properly review suspect listings. According to the Commission, some human reviewers had only ten to twenty seconds to assess each product, a pace regulators said made reliable enforcement impossible.
The EU also criticized the platform’s systems for monitoring sellers and handling repeat offenders, asserting that some traders continued to operate even after being flagged for illegal sales. Regulators said this indicated systemic shortcomings rather than isolated lapses.
AliExpress Response and Rejection of Penalty
AliExpress, which is part of the Alibaba Group, rejected the penalty as disproportionate and said it disagrees with the Commission’s assessment. In a statement to the Commission, the company said the decision did not reflect its established systems or the “significant, proactive improvements” it has made.
The platform said it is reviewing the ruling closely and is considering all available options. AliExpress did not accept the penalty as final and indicated it may pursue legal or administrative challenges.
Legal Basis Under the Digital Services Act
The decision is grounded in the EU’s Digital Services Act, a regulation designed to increase accountability for large online platforms and marketplaces. The DSA permits fines up to 6 percent of a company’s annual turnover for serious breaches, and the AliExpress fine is part of a broader enforcement push under that framework.
The Commission opened its investigation into AliExpress in March 2024 and said evidence of DSA violations was gathered through to the summer of 2025. This ruling marks the third major DSA sanction, following earlier penalties against other large online services.
Timeline and Financial Context
The sanction arrives as the Alibaba Group reported substantial revenues in recent years, with the company’s global turnover cited at roughly €122 billion for 2025. The size of the fine — €550 million — reflects the Commission’s assessment of the severity and scale of the alleged breaches rather than a simple percentage calculation tied to AliExpress’s specific revenues.
The Commission has given AliExpress until October 20 to remedy the identified shortcomings. Officials warned that failing to meet that deadline could trigger further penalties or additional enforcement measures under the DSA.
Wider Implications for Marketplaces and Consumers
Regulators say the decision is intended to signal that online marketplaces must take systematic measures to detect and block illegal listings and to prevent unsafe products from reaching consumers. Consumer groups and some national regulators have been pressuring the EU to enforce digital marketplace rules more strictly since the DSA took effect.
Industry observers say the ruling could prompt platforms to invest more heavily in compliance teams, automated detection systems, and stricter seller vetting. The outcome may also influence how e-commerce companies balance user experience with regulatory obligations in the EU market.
The Commission framed its decision as a necessary step to protect consumers and public safety, while AliExpress emphasized the improvements it has already implemented and its willingness to cooperate further. The next months will determine whether the platform meets the Commission’s corrective demands or pursues a legal challenge to the penalty.
