The European Union has imposed a record €550 million ($630 million) fine on Alibaba-owned e-commerce platform AliExpress for failing to adequately prevent the sale of illegal, counterfeit and unsafe products on its marketplace, according to AFP.
The penalty, the largest ever issued under the bloc's Digital Services Act (DSA), follows an investigation launched in March 2024 into the company's handling of prohibited goods, including toys and cosmetics.
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EU regulators said AliExpress allowed many illegal listings to remain online for weeks even after they had been identified, while several products also failed to meet the bloc's environmental and product safety standards.
"Risks must be identified and addressed systematically to ensure consumers can safely shop online," EU technology chief Henna Virkkunen said, adding that the platform must take corrective action.
According to AFP, the European Commission said the size of the fine reflected the seriousness and duration of the violations, as well as their impact on consumers across the European Union.
The amount exceeds earlier DSA penalties, including a €120 million fine on X and a €200 million penalty on Temu.
AliExpress described the sanction as "disproportionate", saying it did not accurately reflect the compliance measures and improvements the company had introduced.
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The company said it was considering all available legal options.
AliExpress is the largest Chinese online marketplace in the European Union, serving about 193 million users.
EU officials said the investigation found millions of banned or non-compliant products repeatedly resurfaced on the platform, while sellers offering illegal goods continued operating despite repeated violations.
The company has been directed to pay the fine and submit a compliance plan by October 20 or face additional financial penalties.
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