The European Commission has imposed its largest-ever fine under the Digital Services Act, citing AliExpress for inadequate measures to prevent the sale of dangerous and counterfeit goods.
| PULSE POINTS |
❓ WHAT HAPPENED: The European Commission fined AliExpress 550 million euros ($629 million) for failing to adequately tackle the sale of unsafe and counterfeit products on its platform. This penalty is the largest issued under the EU’s Digital Services Act (DSA) to date. 📺 DETAIL: European Commission Executive Vice-President Henna Virkkunen said the spread of counterfeit clothing, unsafe toys, dangerous cosmetics, and other illegal products reflected AliExpress’s failure to meet its obligations under the DSA, adding that the company must better identify and mitigate systemic risks regardless of its size. AliExpress claims it remains committed to complying with the DSA and has invested heavily in product safety, risk assessment, and consumer protection, but argued the fine is disproportionate and said it is reviewing the decision and considering its legal options. The penalty covers conduct through at least June 2025, when the Commission issued preliminary findings that AliExpress had not done enough to combat illegal products while accepting commitments from the company to strengthen its compliance measures. The Commission has ordered AliExpress to submit an action plan by October 20 detailing how it will address the identified shortcomings. The ruling comes less than three weeks after AliExpress parent company Alibaba agreed to pay $600 million to settle U.S. government allegations involving the sale and importation of illegal pharmaceuticals, controlled substances, regulated chemicals, and pill-making equipment into the United States. 💬 KEY QUOTE: “Scale is not an excuse; risks must be identified and addressed systematically to ensure consumers can safely shop online.” – Henna Virkkunen, European Commission executive vice-president. 🎯 IMPACT: This record-setting fine underscores the EU’s commitment to enforcing the Digital Services Act and holding major online platforms accountable for consumer safety. It also highlights growing scrutiny of Chinese e-commerce platforms operating in Western markets. |
Join Pulse+ to comment below, and receive exclusive e-mail analyses.
show less
.jpg){kind=link}
