Chinese online marketplace AliExpress has been handed a record €550 million ($645 million) penalty by European Union regulators after authorities concluded that the platform failed to adequately prevent the sale of illegal products and did not comply with key obligations under the bloc’s digital regulations.
The landmark enforcement action marks one of the largest financial penalties imposed under the European Union’s strengthened online platform rules and underscores Brussels’ growing determination to hold major technology companies accountable for protecting consumers from unsafe and unlawful goods sold through digital marketplaces.
According to the European Commission, its investigation found that AliExpress had failed to implement effective measures to identify, remove and prevent the continued sale of illegal products across its platform. Regulators said the company’s systems for detecting prohibited listings and responding to reports from users and authorities were insufficient to meet the standards required under EU law.
The Commission concluded that the platform exposed European consumers to a range of unlawful products, including counterfeit merchandise, unsafe consumer goods and other items prohibited under European regulations. Officials said the failures created significant risks to consumer safety and undermined confidence in the online marketplace.
The record fine follows an extensive investigation into AliExpress’ compliance with the European Union’s Digital Services Act (DSA), legislation designed to increase the accountability of major online platforms by requiring them to address illegal content, improve transparency and strengthen consumer protections.
EU officials said the investigation revealed shortcomings in the company’s internal risk assessments, moderation systems and enforcement procedures intended to prevent illegal goods from reaching consumers within the bloc.
Regulators also criticized AliExpress for failing to properly evaluate the systemic risks associated with its marketplace, including the circulation of counterfeit products, misleading listings and potentially dangerous goods offered by third-party sellers.
The European Commission stated that very large online platforms operating within the European Union have a legal obligation to actively identify and mitigate risks rather than relying solely on consumer complaints after illegal products have already been listed.
Officials emphasized that online marketplaces benefiting from millions of European customers must demonstrate that they have effective systems capable of detecting unlawful activity and responding quickly when violations occur.
In announcing the penalty, EU authorities said the decision sends a strong signal that digital platforms cannot avoid responsibility for ensuring compliance with European consumer protection standards.
The Commission stressed that protecting consumers from counterfeit, unsafe and illegal products remains a top enforcement priority as online shopping continues to expand across the European Union.
Alongside the financial penalty, regulators ordered AliExpress to implement comprehensive corrective measures designed to strengthen its compliance systems. These include improving seller verification procedures, enhancing automated detection tools, increasing transparency regarding product listings and accelerating the removal of illegal goods once identified.
The company will also be expected to provide regulators with regular updates demonstrating that it has implemented effective safeguards to prevent similar violations in the future.
AliExpress acknowledged the Commission’s decision and said it is reviewing the findings while reaffirming its commitment to operating in accordance with European laws and regulations.
In a statement, the company said it has invested significant resources in improving consumer safety, strengthening product monitoring systems and expanding cooperation with regulators and law enforcement agencies.
AliExpress added that it remains committed to providing a secure shopping experience for European consumers and will continue enhancing its moderation technologies and compliance procedures.
Despite those assurances, consumer advocacy organizations welcomed the Commission’s decision, arguing that stronger enforcement is necessary to address the growing volume of counterfeit and unsafe products sold through large international online marketplaces.
Consumer rights groups have long argued that platforms hosting third-party sellers should bear greater responsibility for ensuring products offered to customers meet applicable legal and safety standards before they become available for purchase.
Several organizations described the record penalty as an important step toward creating a safer digital marketplace and encouraging greater accountability among global e-commerce companies.
Industry analysts noted that the decision could have significant implications beyond AliExpress, as other major online platforms operating within the European Union are likely to face increased regulatory scrutiny under the Digital Services Act.
Experts said the enforcement action demonstrates that European regulators are prepared to impose substantial financial penalties where companies fail to meet their legal obligations regarding illegal content and consumer protection.
The ruling is also expected to encourage digital marketplaces to invest further in artificial intelligence, automated monitoring systems and human moderation teams capable of identifying suspicious listings before they reach consumers.
The European Union has increasingly positioned itself as a global leader in regulating large technology companies through legislation aimed at promoting transparency, competition, cybersecurity and online safety.
The Digital Services Act forms a central part of that strategy by establishing stricter responsibilities for very large online platforms, including mandatory risk assessments, stronger content moderation, greater transparency in advertising and enhanced protection for users.
Regulators said continued enforcement of the legislation will remain a priority as they monitor compliance by major digital platforms operating across the European single market.
As online commerce continues to grow rapidly, the record fine against AliExpress highlights the European Union’s determination to ensure that technology companies prioritize consumer safety, remove illegal products more effectively and comply fully with the bloc’s evolving digital regulatory framework.
