European Commission Fines AliExpress €550 Million Over Digital Services Act Violations
The European Commission has imposed a €550 million (approximately $628 million) fine on AliExpress, citing failures to meet requirements under the European Union’s Digital Services Act (DSA).
According to the Commission, the online marketplace did not take sufficient measures to assess and reduce risks associated with the sale of illegal, unsafe, and counterfeit products on its platform.
Findings of the Investigation
The European Commission stated that its investigation identified several areas where AliExpress’ compliance systems did not meet the standards required under the DSA.
Among the key findings, regulators said the platform:
- Did not adequately assess the risks associated with illegal product listings.
- Overestimated the effectiveness of its product detection and moderation systems.
- Did not sufficiently evaluate how its recommendation and advertising systems could contribute to the visibility of prohibited products.
Officials also noted that the platform relied heavily on a limited set of performance indicators that did not fully reflect how effectively illegal listings were being identified and removed.
Product Moderation Concerns
According to the Commission, some prohibited product listings remained available for extended periods even after being identified.
The investigation also found that certain sellers were able to bypass compliance checks by incorrectly categorizing or describing products.
In addition, regulators concluded that AliExpress’ brand protection measures were not fully effective in preventing counterfeit listings from appearing on the marketplace.
Compliance Deadline
The European Commission has instructed AliExpress to submit a detailed action plan by October 20, outlining the steps it will take to improve compliance with the Digital Services Act.
Following the submission, the European Board for Digital Services will review the proposal before the Commission makes a final assessment and establishes a timeline for implementing the required measures.
Company Response and Next Steps
The Commission’s decision is part of the European Union’s broader effort to strengthen oversight of large online platforms and improve consumer protection within the digital marketplace.
AliExpress is expected to work with EU regulators to address the identified issues and enhance its compliance processes in accordance with the Digital Services Act.
