EU Fines AliExpress $629 Million for Counterfeit Goods

The European Commission imposed a 550 million euro ($629 million) fine on Chinese online marketplace AliExpress on Monday for failing to adequately combat the sale of unsafe and counterfeit products. This penalty represents the largest fine ever issued for violations of the European Union's Digital Services Act (DSA).

This action follows similar penalties against other online platforms. In recent months, Temu was fined 200 million euros for comparable breaches, and last year, Elon Musk's social media platform X received a $120 million penalty. Executive Vice-President Henna Virkkunen stated that the proliferation of counterfeit and dangerous goods online is not an unavoidable consequence of e-commerce but a direct result of AliExpress's non-compliance with its DSA obligations. She emphasized that platform scale does not exempt companies from systematically identifying and addressing risks to ensure consumer safety.

AliExpress responded via email, asserting its commitment to meeting DSA obligations and highlighting substantial investments in risk assessment, product safety, and consumer protection. The company expressed disagreement with the fine, deeming it disproportionate and not reflective of its implemented enhancements, and indicated it is reviewing the decision and considering its options. The commission's ruling pertains to AliExpress's conduct up to at least June 2025, when a preliminary assessment found the platform insufficient in addressing illegal product sales under the DSA. AliExpress was given a deadline of October 20 to submit further actions.