AliExpress has been fined €550 million by the European Commission for failing to assess and mitigate the risks associated with illegal, unsafe and counterfeit products offered through its online marketplace.
The European Commission imposed the penalty on 20 July 2026, making it the largest fine issued under the European Union’s Digital Services Act. The Commission found that counterfeit goods, unsafe toys and dangerous cosmetics had remained on the platform for weeks because AliExpress’s detection and enforcement systems were inadequate. AliExpress, which is owned by Alibaba Group, described the fine as disproportionate and said it was reviewing the decision and considering its options.
The Commission found that AliExpress had not properly assessed whether it employed enough people to review product risks and had overstated the effectiveness of its systems. It also concluded that the platform’s advertising and recommendation tools contributed to the dissemination of illegal listings.
Its penalties did not stop sanctioned businesses from continuing to offer prohibited goods, while the mandatory “brand authorisation” process was understaffed and could be circumvented by traders selling counterfeits.
AliExpress must propose remedial measures by 20 October. The Commission is expected to assess those measures in December and may impose further penalties if they do not satisfy the Digital Services Act. Henna Virkkunen, the Commission’s Executive Vice-President for Tech Sovereignty, Security and Democracy, said the failures endangered consumers and disadvantaged companies complying with EU rules.
AliExpress had 193 million users in Europe last year, according to figures cited by the Commission, compared with 156 million for Shein and 130 million for Temu.
The fine exceeds the €200 million penalty previously imposed on Temu and the €120 million penalty against Elon Musk’s X for separate Digital Services Act breaches. Shein remains under investigation. The decision shows that written policies and automated detection systems will not be enough where the Commission considers that a platform’s staffing, enforcement and risk assessments are ineffective in practice.
In-house counsel at online marketplaces should review how product risks are assessed, whether moderation teams are properly staffed and whether advertising or recommendation systems give greater prominence to unlawful listings. They should also check that sanctions against sellers, repeat-infringer controls and brand-verification procedures are effective.
If AliExpress challenges the decision, solicitors and barristers will need to examine the European Commission’s findings, the calculation of the €550 million fine and the changes required under the Digital Services Act.
Law firms advising platforms, consumer brands and marketplace sellers will need input from regulatory, product-safety, intellectual property and technology lawyers. AliExpress’s proposals before the 20 October deadline may also indicate what the Commission will expect from other large online marketplaces.