The European Commission has imposed a staggering €550 million fine on AliExpress, citing the platform’s failure to adequately investigate the risks associated with illegal products and its ineffective countermeasures despite being aware of ongoing issues.
Inadequate Risk Assessment
The Commission’s investigation revealed that AliExpress significantly underestimated the scope of illegal offers on its platform. The company relied on a singular metric for assessment, which only represented a fraction of its moderation efforts. This narrow approach failed to create a reliable overall picture of existing risks.
Moreover, the platform overestimated the effectiveness of its automated systems designed to detect problematic listings. According to the Commission, AliExpress did not sufficiently verify whether adequate personnel were deployed for platform oversight. Consequently, the company could not demonstrate that its existing measures adequately addressed the genuine risks present.
Central to this matter are illegal goods that can be sold to consumers within the European Union through the marketplace. These include counterfeit products, unapproved medications, and offerings violating regulations intended to protect minors.
The €550 million penalty is divided into two segments: €110 million for the inadequate systemic risk assessment and an additional €440 million for insufficient measures to mitigate these risks.
Ongoing Investigations Since March 2024
The formal proceedings against AliExpress were opened by the Commission in March 2024. While the company managed to address some of the initial allegations by June 2025 through binding commitments, the risk assessment and corresponding countermeasures remained unresolved.
AliExpress is now required to rectify the identified violations and must report to the Commission within 60 working days about the specific measures it intends to implement. Following this, the platform has twelve months to fully initiate these changes.
This fine marks the highest penalty imposed under the Digital Services Act to date, as per the EU Commission. The DSA mandates large platforms to regularly assess systemic risks and take appropriate actions against illegal content and products.
Implications for E-commerce Platforms
The significant penalty against AliExpress sends a strong signal to other e-commerce platforms regarding the importance of compliance with the Digital Services Act. As the online marketplace continues to expand, platforms must prioritize effective risk management strategies to safeguard consumers and adhere to regulatory obligations.
This case underscores the necessity for platforms to invest in better detection systems and personnel to manage and moderate listings effectively. Failure to do so not only endangers consumers but also exposes companies to severe financial penalties.
Conclusion
The hefty fine on AliExpress illustrates the European Union’s rigorous stance on illegal products sold online. As digital marketplaces grow, adherence to laws like the Digital Services Act will become increasingly critical for platforms aiming to operate sustainably and responsibly. Companies must learn from AliExpress’s experience and take proactive steps to ensure consumer safety and legal compliance.
