EU Fines AliExpress €550M for Illegal, Counterfeit Products
The European Commission fined AliExpress €550 million for Digital Services Act violations.
Why it matters: This record fine signals heightened regulatory scrutiny on e-commerce platforms, crucial for compliance and legal risk professionals worldwide.
- The €550 million penalty is the largest under the EU Digital Services Act to date.
- AliExpress failed to mitigate risks from counterfeit clothing, unsafe toys, and harmful cosmetics.
- AliExpress must submit an action plan by October 20, 2026 to address these violations.
- Previous fines include €200 million for Temu and €120 million for social media platform X.
On July 20, 2026, the European Commission imposed a €550 million fine on AliExpress for failing to comply with the Digital Services Act (DSA). This marks the largest penalty issued under the DSA, highlighting the EU’s enforcement resolve.
The investigation revealed AliExpress allowed the sale of dangerous and illegal products including counterfeit clothing, unsafe toys, and harmful cosmetics. Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, emphasized, "The spread of counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal and harmful products is not an unavoidable cost of shopping online - it is a failure by AliExpress to comply with its obligations under the Digital Services Act."
AliExpress has until October 20, 2026, to submit a comprehensive action plan to the Commission outlining measures to prevent further breaches. The platform's spokesperson expressed disagreement with the ruling and called the fine disproportionate, citing significant proactive improvements already made.
This enforcement follows previous fines under the DSA, including €200 million against Temu and €120 million against social media platform X for comparable violations. Furthermore, AliExpress’s parent company, Alibaba, recently settled a $600 million case in the U.S. concerning illegal substance sales, underscoring a wider regulatory focus on online marketplaces.
The DSA aims to enhance digital safety, protect user rights, and prevent illegal content circulation, signaling that platforms bear increased legal responsibility for products sold through their services.
By the numbers:
- €550 million — fine imposed on AliExpress for DSA violations
- October 20, 2026 — deadline for AliExpress to submit an action plan
- €200 million — prior fine against Temu for similar breaches
Yes, but: AliExpress disputes the ruling, calling the fine disproportionate and highlighting existing compliance efforts.
What's next: AliExpress must deliver its action plan to the European Commission by October 20, 2026, which will be reviewed for adequacy in addressing illegal product sales.