The European Commission has fined the Chinese online retail platform AliExpress a record €550 million ($629 million). This penalty is the largest ever imposed under the European Union's Digital Services Act (DSA), legislation that came into force in 2024 to protect consumers from illegal goods and deceptive or addictive marketing techniques.
The fine follows a two-year investigation into the e-commerce service's failure to curb the sale and promotion of illegal, unsafe, and counterfeit products. Specifically, the platform allegedly breached the DSA by allowing the spread of counterfeit clothing and other harmful items, including cosmetics, kitchen gadgets, and unsafe toys.
This action marks the third penalty the EU has imposed in under a year, following sanctions against the online marketplace Temu and the social media platform X. The move comes as the EU accelerates its crackdown on Chinese online marketplaces through increased import charges and aggressive compliance checks for sites like Shein and Temu. In response, AliExpress stated that the penalty is disproportionate.