The European Commission has fined AliExpress €550 million for failing to adequately address the sale of illegal, unsafe, and counterfeit products on its platform. The penalty, announced on Monday, is the latest step in the EU's intensifying regulatory pressure on Chinese online marketplaces.
The fine comes just days after the bloc introduced a €3 flat duty on parcels valued under €150, which previously entered the EU duty-free. That policy change is expected to significantly affect the business models of AliExpress, Shein, and Temu, all of which rely heavily on low-cost shipments from China.
Digital Services Act Violations
The Commission's investigation, launched in 2024, found that AliExpress breached the EU's Digital Services Act (DSA) by failing to establish an effective system to detect and remove illegal products. Regulators determined that the platform underestimated the gap between the number of human moderators available and the scale of their workload, leading to systemic enforcement failures.
According to the Commission, large volumes of illegal products—including unsafe toys and dangerous cosmetics—continued to circulate on AliExpress despite moderation efforts. In some cases, flagged items remained online for weeks before being removed.
The investigation also revealed that AliExpress's product compliance checks were vulnerable to abuse. Malicious traders allegedly misclassified products to exploit less stringent requirements, allowing counterfeit goods to slip through safeguards.
Penalty Enforcement Failures
The Commission further found that AliExpress failed to properly enforce its own penalty policy. Stores selling illegal products remained active on the platform even after receiving sanctions, undermining the deterrent effect of the company's rules.
The platform's brand authorisation system, designed to prevent the sale of counterfeit goods, was deemed ineffective and insufficiently robust. Sellers were able to bypass safeguards and list fake products, the Commission said.
AliExpress now has until 20 October 2026 to submit an action plan detailing how it will address the Commission's concerns. The EU executive will then decide within two months whether further action is required.
In a statement to Euronews, AliExpress said it has invested substantial resources in risk assessment and mitigation, product safety, and consumer protection. The company did not indicate whether it would appeal the fine.
The penalty is part of a broader EU crackdown on Chinese e-commerce platforms, which have faced increasing scrutiny over product safety, labour practices, and customs compliance. The new €3 duty on low-value parcels is expected to reduce the cost advantage these platforms have enjoyed over European retailers.
For context, the EU's cultural sector employs 8.9 million people, as highlighted in the bloc's first culture declaration, underscoring the economic weight of regulated industries across member states.
