EU fines Alibaba €550m over fake goods sold through AliExpress
The European Union has imposed a landmark fine of €550 million on Alibaba Group Holding Ltd. for the sale of prohibited items via the AliExpress platform. This is the highest fine imposed so far under the region’s content‑moderation rules.
According to a announcement from the European Commission on Monday, the e‑commerce company failed to properly check for counterfeit or dangerous goods and did not penalise repeat offenders.
The legal action follows an investigation launched in 2024 under the Digital Services Act (DSA). Henna Virkkunen, executive vice-president for technology at the Commission, said the distribution of goods that do not comply with safety and environmental standards posed a risk to the public and causes unfair competition for companies that do comply with the law.
This enforcement action reflects a broader trend in which the EU has been aggressively applying the DSA since its full entry into force in 2024. Earlier sanctions under this framework included a €200 million fine against Temu and a €120 million fine against X. Although the Commission took into account the fact that the law is still new when setting the amount of the fine, the decision was based on risk assessments carried out over the course of 2023 and 2024.
In response, a representative of AliExpress indicated that the company does not agree with the ruling. He described the financial penalty as excessive and argued that it overlooks the proactive improvements the company has implemented.
The company is currently examining its legal options.
Under the DSA, digital platforms with more than 45 million European users are required to identify and mitigate systemic risks. Non-compliance can result in fines of up to 6% of a company’s total global annual turnover. AliExpress must now submit a corrective strategy by 20 October at the latest, after which regulators will have 60 days to finalise the implementation schedule.
Business AM
Subscribers 0
Fans 0
Followers 0
Followers