EU regulators have imposed a 550‑million‑euro fine on AliExpress, marking the largest penalty under the bloc’s Digital Services Act (DSA) to date.
EU says platform sold illegal and counterfeit goods
The European Commission said the Chinese‑owned marketplace allowed the sale of products that violate EU safety and environmental rules, including unsafe toys and cosmetics. An investigation that began in March 2024 found many illegal items stayed online for weeks after detection.
Commissioner for digital policy Henna Virkkunen said, “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.”
The report noted the platform’s “brand authorisation” system was ineffective and understaffed, allowing counterfeit traders to bypass checks. The EU also observed that prohibited goods were repeatedly recommended to shoppers before removal.
AliExpress, which serves 193 million EU users, called the fine “disproportionate” and said it does not reflect the “significant, proactive enhancements” it has made. It added that it is “considering all available options.”
Context of growing trade tension
Europe’s relationship with China has grown increasingly strained over what Brussels describes as a large trade imbalance and perceived overproduction by Chinese manufacturers. Leaders such as Ursula von der Leyen have warned that the bloc may take further steps to address these concerns.
Related: Trump Tariffs Threaten $9.7 Billion in Indian Drug Exports
Officials claim the EU market is being flooded with low‑priced Chinese goods, ranging from electric vehicles to everyday consumer items, creating unfair competition for local producers.
The fine calculation considered the nature of the violations, the impact on European consumers, and the duration of the infringements.
Compared with previous DSA actions, the AliExpress case highlights a shift toward stricter enforcement of online marketplace responsibilities. Earlier penalties, such as the €120 million fine on Elon Musk’s X platform and the €200 million sanction on Temu, targeted similar compliance gaps, but none reached the scale of this latest sanction.
The outcome could influence how other e‑commerce sites operate in Europe, especially those relying on third‑party sellers to list products.
A more rigorous approach may force platforms to invest in stronger verification processes and faster removal of non‑compliant items.
Leave a Reply