EU Hits AliExpress with Record $647m Fine

The European Commission has imposed a record €550m ($647m) fine on online marketplace AliExpress for failing to adequately prevent the sale of illegal, dangerous and counterfeit products.

The penalty is the largest imposed to date under the Digital Services Act (DSA), which requires major online platforms to remove illegal content and mitigate systemic risks.

The Commission said AliExpress underestimated the risks on its platform, failed to properly monitor sellers and allowed its recommendation and advertising systems to promote dangerous products, including counterfeit goods, toys and cosmetics.

Brussels also criticized the company's ineffective enforcement against sellers that violated its rules and said its controls for verifying brand authenticity were inadequate.

AliExpress called the fine disproportionate and said it would appeal, adding that it has significantly strengthened its monitoring and enforcement systems in recent months. The Commission said the company could face additional sanctions if it fails to implement sufficient corrective measures by December.

(Reuters, mja)