News
General
8 views
EU fines AliExpress record $629 million over counterfeit goods
Jul 21, 2026
📍 Philadelphia, PA, USA
The European Union has imposed a record €550 million ($629 million) fine on Alibaba-owned AliExpress for failing to prevent the sale of illegal, counterfeit, and unsafe products on its online marketplace. The penalty is the largest ever issued under the Digital Services Act (DSA), highlighting the EU's tougher approach to regulating major digital platforms.
According to the European Commission, AliExpress did not adequately identify or reduce the risks associated with counterfeit goods, unsafe toys, and harmful cosmetic products sold through its platform. Regulators said many prohibited listings remained available for consumers despite existing monitoring systems.
The Commission also found that the company's systems for detecting illegal products were ineffective and that its recommendation algorithms continued promoting suspicious listings. Officials criticized AliExpress' brand protection program, stating it lacked sufficient oversight and allowed counterfeit sellers to continue operating even after violations were identified.
European Commission Executive Vice President Henna Virkkunen said protecting consumers and ensuring fair competition are key priorities, especially as AliExpress serves nearly 193 million users across Europe. She stressed that large online marketplaces must meet stricter safety and transparency standards.
AliExpress has rejected the decision, calling the fine excessive and confirming that it will appeal. The company stated that it has introduced stronger risk management measures and worked closely with European regulators to improve platform safety.
The online marketplace has until October 20 to submit a detailed compliance plan. If regulators find the company's corrective measures insufficient during a December review, additional penalties could follow.
The record fine signals the European Union's determination to enforce the Digital Services Act and hold global e-commerce platforms accountable for protecting consumers from illegal and unsafe products.
According to the European Commission, AliExpress did not adequately identify or reduce the risks associated with counterfeit goods, unsafe toys, and harmful cosmetic products sold through its platform. Regulators said many prohibited listings remained available for consumers despite existing monitoring systems.
The Commission also found that the company's systems for detecting illegal products were ineffective and that its recommendation algorithms continued promoting suspicious listings. Officials criticized AliExpress' brand protection program, stating it lacked sufficient oversight and allowed counterfeit sellers to continue operating even after violations were identified.
European Commission Executive Vice President Henna Virkkunen said protecting consumers and ensuring fair competition are key priorities, especially as AliExpress serves nearly 193 million users across Europe. She stressed that large online marketplaces must meet stricter safety and transparency standards.
AliExpress has rejected the decision, calling the fine excessive and confirming that it will appeal. The company stated that it has introduced stronger risk management measures and worked closely with European regulators to improve platform safety.
The online marketplace has until October 20 to submit a detailed compliance plan. If regulators find the company's corrective measures insufficient during a December review, additional penalties could follow.
The record fine signals the European Union's determination to enforce the Digital Services Act and hold global e-commerce platforms accountable for protecting consumers from illegal and unsafe products.
Tags
news
Comments (0)
Login to post comments
No comments yet
Be the first to share your thoughts about this post.