AliExpress Faces Record $625 Million Fine Under EU Digital Services Act
The European Commission has imposed a $625 million penalty on AliExpress for failing to adequately mitigate the sale of unsafe and counterfeit goods. The ruling marks the largest fine issued to date under the Digital Services Act.
The European Commission has issued a record-breaking $625 million fine against AliExpress, marking the most significant financial penalty to date under the European Union’s Digital Services Act (DSA). According to Ars Technica, the regulatory action follows the retailer's failure to address systemic risks related to the distribution of illegal, counterfeit, and unsafe products on its platform.
Regulators determined that the company failed to implement sufficient safeguards, noting that the platform's moderation teams were inadequately staffed to handle the volume of flagged items. Investigations revealed that content moderators were often allotted only seconds to evaluate product compliance, leading to instances where prohibited goods remained active for over a month. Furthermore, the European Commission found that AliExpress’s recommender and advertising algorithms inadvertently amplified the reach of these illegal products rather than suppressing them.
The enforcement action highlights a broader regulatory push to hold major e-commerce platforms accountable for the safety of goods sold to European consumers. EU tech chief Henna Virkkunen emphasized the scale of the issue, noting that a significant portion of the European population engages with platforms like AliExpress, Temu, and Shein on a monthly basis. Despite being ordered to bring its operations into compliance in June 2025, the company reportedly failed to make the necessary structural adjustments, leading to the current penalty.
For investors and market analysts, this ruling signals a tightening of the regulatory environment for cross-border e-commerce entities operating within the EU. The fine serves as a benchmark for future enforcement, suggesting that reliance on automated metrics and understaffed moderation teams will no longer be viewed as sufficient by European authorities. Market participants should monitor how AliExpress restructures its brand authorization systems and whether other major e-commerce players face similar scrutiny as the Commission continues to evaluate compliance with the DSA.