The European Commission has fined AliExpress €550 million for breaching its obligations under the Digital Services Act (DSA), the executive announced on Friday.
What the Commission announced
According to the Commission, AliExpress failed to diligently assess and mitigate risks linked to the sale of illegal, unsafe or counterfeit products on its e-commerce platform. The infringement relates specifically to obligations set out under the DSA. In addition to the fine, the Commission said it has ordered the platform to take action, without providing further detail in the announcement.
Why it matters
The DSA establishes new rules on how large online platforms must manage systemic risks, including the distribution of illegal and unsafe goods. Enforcement actions against major marketplaces demonstrate the Commission’s use of the new regulatory framework to hold digital services accountable for risk management on their platforms. The penalty against AliExpress is significant in size and signals the Commission’s readiness to impose substantial fines when it finds DSA obligations have not been met.
What happens next
The Commission’s statement indicates that AliExpress has been ordered to take corrective action, but it did not specify the measures required or any timelines. The announcement likewise does not detail whether AliExpress intends to appeal the fine or the Commission’s decision-making process. Further procedural steps, such as implementation of corrective measures or potential legal challenges, were not described in the release.
Source: European Commission press release
