- AliExpress was fined €550 million on Monday, July 20, for violating the Digital Services Act (DSA).
- The European Commission stated that AliExpress failed to "diligently assess and mitigate risks relating to the sale of illegal, unsafe or counterfeit products."
- Henna Virkkunen, the EU tech chief, emphasized that the spread of counterfeit clothing, unsafe toys, and dangerous cosmetics is a failure by AliExpress to comply with its obligations under the DSA.
- This fine is the largest imposed under the DSA, surpassing the €200 million fine on Temu and €120 million on Elon Musk's platform.
- AliExpress plans to appeal the fine, claiming it is excessive and ignores their risk management framework.
The European Commission has levied a record €550 million fine against AliExpress for failing to comply with the Digital Services Act (DSA), marking a significant enforcement action against the platform.12
The Commission found that AliExpress did not adequately assess and mitigate risks associated with the sale of illegal, unsafe, or counterfeit products. “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,” stated Executive Vice President Henna Virkkunen.3
This fine is the largest imposed under the DSA, surpassing previous penalties of €120 million against Elon Musk's platform and €200 million against Temu. The Commission has mandated that AliExpress propose remedial measures by October 20, with potential further penalties if compliance is not achieved by December.4
AliExpress has announced plans to appeal the fine, arguing that it is excessive and overlooks the proactive measures the company has taken to enhance its risk management framework. “Today’s decision and disproportionate fine ignores our sound risk management framework and the significant, proactive enhancements we have made,” the company stated.5
The Commission criticized AliExpress for its ineffective brand authorization system, which was intended to prevent counterfeit sales but was easily circumvented by traders. The regulator emphasized that the novelty of the DSA was a mitigating factor in determining the fine amount, which could have been higher.
AliExpress previously avoided a fine of up to 6% of its global annual turnover by agreeing to measures to combat illegal content on its platform.
“The fine, the third DSA enforcement, surpasses the €120 million penalty on X and the €200 million on Temu. AliExpress said it will appeal, calling the fine disproportionate and ignoring its risk management framework, while the Commission cited failures in the brand authorization system.”
Le Monde.fr
