The European Union has imposed a €550 million ($629 million) fine on AliExpress for failing to prevent the sale of counterfeit, illegal, and unsafe products on its marketplace. The penalty is the largest ever issued under the EU’s Digital Services Act (DSA) and marks one of the toughest regulatory actions taken against a global e-commerce platform.
According to the European Commission, AliExpress did not take sufficient steps to identify, assess, and reduce the risks associated with illegal products sold on its platform. Investigators found that counterfeit goods, unsafe toys, and potentially harmful cosmetics remained available for extended periods before being removed.
The Commission also revealed that sellers previously penalized for offering illegal products were allowed to continue trading, raising concerns about the effectiveness of AliExpress’ enforcement measures.
Why the EU fined AliExpress
The investigation identified several shortcomings in AliExpress’ compliance systems.
Regulators said the company overstated the effectiveness of its systems for detecting illegal listings while allocating too few resources to teams responsible for preventing counterfeit sales.
The Commission also found that AliExpress’ advertising and recommendation algorithms sometimes increased the visibility of illegal products instead of reducing it. In addition, the platform relied too heavily on a single performance metric to evaluate its moderation efforts, making it difficult to accurately measure how well harmful content was being detected and removed.
AliExpress responds to the record fine
AliExpress has rejected the Commission’s decision, describing the €550 million penalty as “excessive and disproportionate.”
The company argued that the ruling does not fully recognize the improvements it has already made to strengthen product safety and marketplace enforcement. It also confirmed that it is reviewing the decision and considering its legal options.
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Another major Digital Services Act enforcement
The AliExpress decision continues the European Union’s increasing enforcement of the Digital Services Act against major online platforms.
It is the third major DSA fine issued since the law came into force and is significantly larger than previous penalties.
Earlier this year, Temu received a €200 million fine over similar concerns involving dangerous products, including unsafe baby toys and faulty chargers. In December 2025, X was fined €120 million for separate violations of the Digital Services Act.
Under the DSA, companies can be fined up to 6% of their global annual revenue for serious breaches of the regulation.
With approximately 193 million users across Europe last year, more than both Temu and Shein, AliExpress has one of the continent’s largest e-commerce footprints, making the Commission’s record penalty particularly significant.
EU says consumer safety comes first
EU technology chief Henna Virkkunen defended the Commission’s decision, saying platforms must do more to protect consumers and ensure fair competition.
She warned that allowing illegal and counterfeit products to remain available online puts shoppers at risk while disadvantaging businesses that comply with safety and consumer protection rules.
What this means for Nigerian consumers
The increased scrutiny of global e-commerce platforms also has implications for Nigeria.
Earlier this year, the Nigeria Data Protection Commission (NDPC) launched an investigation into Temu over concerns that the personal data of approximately 12.7 million Nigerians may have been mishandled.
As regulators across different regions tighten oversight of major online marketplaces, companies such as AliExpress, Temu, and other global e-commerce platforms are likely to face greater pressure to improve consumer protection, product safety, and compliance with local regulations.
Final thoughts
The €550 million penalty against AliExpress sets a new benchmark for enforcement under the EU’s Digital Services Act. It signals that regulators are prepared to impose significant financial consequences on digital platforms that fail to tackle counterfeit goods, illegal listings, and unsafe products.
For consumers, the move aims to create a safer online shopping environment. For large e-commerce companies, it serves as a clear reminder that stronger moderation, better product oversight, and stricter compliance are no longer optional.
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