AliExpress fined $629 million for illegal product sales

The European Commission has fined AliExpress €550 million, approximately $629 million, for violating the Digital Services Act (DSA). The penalty stems from the platform's failure to prevent the sale of illegal, unsafe, or counterfeit products. This fine is more than double the amount imposed on Temu for similar DSA violations.

The ruling affects AliExpress, a global e-commerce platform owned by Alibaba, and its millions of users across Europe. The European Commission determined that the company did not take adequate measures to curb the spread of illegal products, citing insufficient staffing for product verification and delays in removing hazardous items.

This matters because the DSA aims to hold large online platforms accountable for illegal content and products. The fine underscores the EU's commitment to enforcing these rules, particularly for e-commerce sites where counterfeit goods and unsafe items can harm consumers.

According to the Commission, AliExpress allocated inadequate staff to verify products and failed to remove unsafe toys and dangerous cosmetics for multiple weeks after detection. The specific violations include the spread of counterfeit clothing, unsafe toys, and dangerous cosmetics.

The Verge reported that this fine follows a similar penalty against Temu, another e-commerce platform, for comparable DSA breaches. The European Commission has been increasing scrutiny of online marketplaces to ensure compliance with consumer protection laws.

Going forward, AliExpress will need to significantly improve its product verification processes and response times to avoid further penalties. The company may also face additional regulatory actions if it fails to comply with the DSA's requirements in the future.