EU imposes record €550m fine on AliExpress

The European Commission has fined AliExpress €550 million for breaching obligations under the Digital Services Act. The decision follows an investigation into how the online marketplace handles illegal and non-compliant products offered to consumers in the European Union. The €550 million sanction is described as the largest fine imposed so far under the Digital Services Act framework.

Regulators concluded that AliExpress allowed large volumes of illegal or non-compliant goods to remain on the platform for extended periods. The cited categories include counterfeit clothing, unsafe toys and dangerous cosmetics that were available to consumers for weeks. These findings focus on the platform’s responsibility to detect, assess and mitigate risks associated with products sold through its services.

The Commission found that AliExpress did not diligently assess whether it had adequate staff to review potentially illegal listings. This staffing assessment is a key requirement for large online platforms designated under the Digital Services Act, which obliges them to manage systemic risks linked to illegal content and goods.

In addition to staffing concerns, the Commission criticised the functioning of AliExpress’s recommender and advertising systems. These systems were found to amplify the spread of illegal products by promoting questionable listings rather than limiting their visibility. Regulators also pointed to weaknesses in enforcement of penalties against sellers and in brand-authorisation and product-compliance checks, though the primary focus of the reported findings centres on the persistence and amplification of illegal goods.

As part of the decision, AliExpress has been ordered to submit an action plan by 20 October 2026. This plan must set out how the company will address the infringements identified by the Commission, including improvements to risk assessment, staffing, and the operation of recommender and advertising tools. Compliance with these obligations is a core element of the Digital Services Act’s regime for very large online platforms.

The Commission stated that if AliExpress’s measures are found to be insufficient, it can impose periodic penalty payments or further sanctions. This creates an ongoing supervisory relationship in which the platform must demonstrate that it is reducing the availability and promotion of illegal and unsafe products. The enforcement approach signals that initial fines may be followed by additional financial or corrective measures if platforms fail to implement effective changes.

AliExpress, owned by Alibaba Group, has publicly disagreed with the Commission’s decision. The company described the €550 million fine as disproportionate and indicated that it is reviewing the decision and considering its options. No further details of potential next steps were provided in the available reports.

The AliExpress case sits within a broader pattern of enforcement under the Digital Services Act. The Commission highlighted that earlier DSA fines included €200 million for Temu in May 2026 and €120 million for X in December 2025. The new €550 million penalty therefore marks an escalation in the scale of sanctions applied under the law and underscores the regulatory focus on how major online platforms manage illegal and unsafe products.