EU slaps record 550 million euro fine on Alibaba’s AliExpress over illegal, unsafe products

New Delhi: The European Union has imposed a record 550 million euro ($630 million) fine on Alibaba-owned e-commerce platform AliExpress for failing to adequately tackle the sale of illegal, counterfeit and unsafe products on its marketplace, marking the largest penalty ever issued under the bloc’s Digital Services Act (DSA).

The European Commission said AliExpress did not take sufficient steps to prevent prohibited goods, including toys and cosmetics, from being sold on its platform.

Regulators found that even after illegal listings were identified, many products continued to remain available for weeks.

Authorities also said several products sold through the platform failed to comply with the European Union’s stringent product safety and environmental standards.

The penalty follows an investigation launched in March 2024 under the Digital Services Act, the landmark legislation introduced by the European Union in 2022 to strengthen oversight of large online platforms and improve consumer protection in the digital economy.

“Risks must be identified and addressed systematically to ensure consumers can safely shop online. Today, we are holding AliExpress to this standard and request it to take action,” EU technology chief Henna Virkkunen said in a statement.

According to the European Commission, the 550 million euro fine reflects the seriousness of the violations, their duration and the impact on consumers across the European Union.

The latest sanction surpasses all previous penalties imposed under the DSA, including a 120 million euro fine levied on Elon Musk-owned social media platform X in December last year and a 200 million euro fine imposed on Chinese online retailer Temu in May.

AliExpress described the penalty as “disproportionate”, saying it does not adequately reflect the company’s compliance framework and the significant improvements it has already implemented to strengthen platform safety.

The company said it is considering all available legal options in response to the decision.

IANS