The European Commission has imposed a substantial fine of €550 million on AliExpress for significant breaches of the Digital Services Act (DSA). The decision comes after the platform was found to have failed in properly assessing and reducing risks associated with illegal, unsafe, and counterfeit products available to its European users.
Breaching the Digital Services Act
The Commission’s investigation highlighted critical weaknesses in AliExpress’s operations, including product moderation, enforcement against non-compliant traders, compliance checks, and systems designed to prevent the sale of counterfeit goods across the European Union. According to European Commission spokesperson Thomas Regnier, the scale of the problem is considerable. “Almost 15 million illegal products were recommended last year to users in the European Union,” Regnier stated, underscoring the platform’s obligations.
The identified illegal products ranged from unsafe or counterfeit cosmetics and toys to non-compliant clothing and gadgets. The Commission concluded that AliExpress did not realistically assess its human moderator staffing levels, overestimated the effectiveness of its detection systems, and failed to employ adequate quantitative measures to evaluate the prevention of illegal products appearing or reappearing on the platform.
Systemic Failures and Consumer Risks
Further findings revealed that illegal products could remain online for several weeks, while stores selling prohibited goods often stayed active despite penalties. Product compliance controls were also found to be bypassable by miscategorizing items. The Commission specifically noted the ineffectiveness and understaffing of AliExpress’s mandatory brand-authorisation system.
With 193 million consumers and users, the EU represents AliExpress’s largest market. This access, the Commission stressed, comes with a clear responsibility to systematically identify and mitigate risks to consumers. Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, reinforced this message, stating, “Scale is not an excuse; risks must be identified and addressed systematically to ensure consumers can safely shop online.”
The €550 million fine was calculated based on the nature, seriousness, and duration of the infringements, which continued at least until June 2025, when preliminary findings were issued. The novelty of the Digital Services Act was considered a mitigating factor in the calculation.
Next Steps for AliExpress
AliExpress is now required to submit an action plan by 20 October 2026, detailing how it will remedy these breaches. The European Board for Digital Services will then have one month to provide its opinion, followed by another month for the Commission to adopt its final decision and establish a reasonable implementation period. Failure to comply with these requirements could lead to periodic penalty payments.
As Thomas Regnier put it, “If you want access to our market, you must make your services safe.” The decision mandates AliExpress to implement corrective measures, indicating that the identified problems are not yet fully resolved.
What is the Digital Services Act (DSA)?
The Digital Services Act is an EU regulation designed to make online platforms more accountable for the content they host, aiming to create a safer and more transparent online environment for users. It imposes obligations on platforms regarding content moderation, risk assessment, and transparency.
Why was AliExpress fined by the European Commission?
AliExpress was fined €550 million for breaching the Digital Services Act, specifically for failing to adequately assess and mitigate risks related to illegal, unsafe, and counterfeit products on its platform. The Commission found weaknesses in its moderation, enforcement, compliance checks, and systems to prevent the sale of prohibited goods.
What are the next steps for AliExpress?
AliExpress must submit a corrective action plan by 20 October 2026, outlining how it will address the identified breaches. This plan will then be reviewed by the European Board for Digital Services and the European Commission, which will set a final implementation period. Non-compliance could result in further penalties.
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