Brussels, Belgium — Ekhbary News Agency
The European Commission has levied a substantial €550 million ($629 million) fine against Chinese e-commerce behemoth AliExpress, citing widespread sales of counterfeit and hazardous items across the bloc. This landmark penalty, the largest ever imposed under the Digital Services Act (DSA), underscores a critical failure by the platform to uphold its regulatory obligations. Henna Virkkunen, the EC's Executive Vice-President for Tech Sovereignty, Security and Democracy, explicitly stated that the proliferation of fake clothing, unsafe toys, and dangerous cosmetics represents a clear breach of the DSA.
Investigation Uncovers Systemic Lapses
An investigation initiated by the EC in March 2024 revealed millions of illicit products, including counterfeit goods and unsafe children's toys, remained available on AliExpress even after being flagged. Investigators determined the platform lacked sufficient staff for proper oversight; indeed, employees tasked with screening products sometimes had mere seconds to assess compliance with EU standards. This lack of diligence, as Virkkunen highlighted, not only endangers consumers but also creates an unfair competitive landscape for businesses adhering to all regulations.
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AliExpress Contests Decision Amid Broader EU Crackdown
AliExpress, owned by Alibaba, has condemned the fine as disproportionate, indicating a review of the decision and consideration of all available options, though specifics on an appeal remain unclear. This action follows a similar €200 million fine against Temu in May under the same DSA framework for comparable failures. The EU has consistently found high rates of non-compliance across major platforms, with previous assessments revealing that a significant percentage of cosmetics (65%), food supplements (63%), and personal protection equipment (60%) on sites like Shein, Temu, and AliExpress failed to meet European standards. The message from regulators is clear: scale cannot excuse lax safety protocols.
