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AliExpress Fined Record $625 Million by EU for Failing to Combat Illegal Products

European Commission cites persistent issues with counterfeit

AliExpress Fined Record $625 Million by EU for Failing to Combat Illegal Products
Ali-Shaqran
6 days ago
10

Ekhbary News Agency | 2026-05-12T14:30:00Z

The European Commission has imposed a record fine of over $625 million on AliExpress, citing its failure to diligently assess and mitigate risks associated with illegal and counterfeit products on its platform. This significant penalty under the Digital Services Act (DSA) highlights persistent issues with the e-commerce giant's moderation efforts.

Inadequate Moderation and Risk Assessment

Officials found that AliExpress not only lacked sufficient dedicated teams for removing dangerous items but also facilitated evasion by bad actors. Content moderators were reportedly given mere seconds to evaluate flagged products, resulting in millions of items reappearing online after being flagged. The platform's mandatory brand authorization system was also deemed ineffective and understaffed, with sellers facing minimal penalties for offering illegal goods. Furthermore, AliExpress inadequately assessed how its recommender and advertising systems amplified the spread of illicit products, sometimes even promoting them to consumers.

Previous Violations and AliExpress's Response

The fine follows AliExpress's failure to comply with a June 2025 order to bring its platform into compliance with the DSA. The penalty is calculated to be proportionate to the "particularly serious infringements" and the company's delayed interventions. This dwarfs previous DSA penalties levied against Temu and X. In response, AliExpress expressed surprise at the "disproportionate" fine and announced plans to appeal, asserting that the EC overlooked its risk management framework and proactive enhancements. The company stated it invests substantial resources in safety and consumer protection, aiming to meet its obligations.

news_keywords: # AliExpress # EU fine # Digital Services Act # counterfeit products # illegal goods # e-commerce # consumer protection