Business & Markets
EU fines AliExpress 550 million euros over illegal products
The European Union fined AliExpress 550 million euros, about $630 million, after saying the online retailer allowed illegal products to be sold on its platform, including unsafe toys and cosmetics.
The EU said AliExpress also failed to do enough to prevent counterfeit goods from being sold. It said that, even when the platform detected illegal products, many stayed online for several weeks.
The findings followed an EU investigation into AliExpress that began in March 2024. The EU said some products sold on the platform did not meet the bloc's environmental and safety standards.
EU tech chief Henna Virkkunen said risks must be identified and dealt with systematically so consumers can shop safely online. She said the EU was holding AliExpress to that standard and asking it to act.
The fine is the largest imposed so far under the EU's Digital Services Act, a law that came into force in 2022 and is used to regulate large digital platforms. The EU fined Elon Musk's X social media platform 120 million euros in December last year and fined Temu 200 million euros in May.
AliExpress criticised the fine as disproportionate. In an updated statement, the company said the EU decision ignored what it described as its sound risk management framework and significant proactive improvements. It said it would appeal.
The EU said the size of the fine took account of the type of violations, their impact on Europeans and how long the infringements lasted.
AliExpress is the largest Chinese e-commerce platform in the EU, with 193 million users. Shein has 156 million users in the bloc and Temu has 130 million. A senior European official said the EU is AliExpress' biggest market.
Under the Digital Services Act, major online platforms, including social networks and online retailers, must assess the risks they create and take steps to address them.
The EU said AliExpress overestimated how effective its systems were at detecting and removing illegal products. An EU official said millions of products would reappear, and many illegal goods were recommended to users before being removed. The EU also said sellers of illegal goods were still able to remain active on the platform.
The EU said AliExpress did not adequately prevent counterfeit sales because its mandatory brand authorisation system was ineffective and understaffed, allowing traders to bypass it.
Digital Services Act fines can reach up to six percent of a company's total worldwide annual turnover. The EU official said Alibaba, AliExpress' parent company, had global turnover of 122 billion euros last year, but that the fine was far below six percent of that figure.
AliExpress must pay the fine and submit a plan to the EU by October 20 setting out how it will address the breaches. If it does not comply, it could face periodic penalty payments.
Virkkunen told reporters that AliExpress was cooperating very actively with the European Commission, which acts as the EU's digital watchdog.
The EU has increased action against what it says is unfair competition from Chinese retailers, including a three-euro levy this month on cheap parcels entering the 27-country bloc. Virkkunen said the EU was not targeting platforms because of their origin and was investigating online platforms from the United States, China and Europe.
Update
AliExpress called the fine disproportionate and said it would appeal.
The EU said AliExpress must submit a plan by October 20 on how it will address the breaches.
The EU said AliExpress could face periodic penalty payments if it does not comply.
An EU official said Alibaba, AliExpress' parent company, had global turnover of 122 billion euros last year and that the fine was well below the DSA maximum of six percent of worldwide annual turnover.
EU tech chief Henna Virkkunen said AliExpress was cooperating very actively with the European Commission.
Source note: AFP news report published on 20 July 2026 at 14:59:40 UTC.
Update
The fine is described as the largest imposed under the EU Digital Services Act.
The EU investigation into AliExpress was launched in March 2024.
The EU said illegal products included unsafe toys and cosmetics, counterfeit products, and goods that did not meet EU environmental and safety standards.
The EU said some illegal goods stayed online for weeks after detection, reappeared in large numbers, and were recommended to users before removal.
The EU said sellers of illegal goods were still able to remain active on AliExpress and that the platform's mandatory brand authorisation system was ineffective and understaffed.
The EU said the fine amount reflected the nature of the violations, their impact on Europeans and their duration.
AliExpress must pay the fine and present an action plan to the EU by October 20, or risk periodic penalty payments if it does not comply.
AliExpress is described as the biggest Chinese e-commerce platform in the EU, with 193 million users; Shein and Temu are listed at 156 million and 130 million users respectively.
A senior European official said the EU is AliExpress's biggest market and that Alibaba's global turnover was 122 billion euros last year.
EU tech chief Henna Virkkunen said AliExpress was cooperating actively and said EU investigations are not based on platform origin.
The story adds comparison with previous EU fines of 120 million euros for X and 200 million euros for Temu.
The source says the EU recently imposed a three-euro levy on cheap parcels entering the bloc as part of its efforts against what it calls unfair competition from Chinese retailers.
Source note: AFP news report published on 20 July 2026 at 10:49:35 UTC.
Update
AliExpress described the European Union's 550-million-euro fine as disproportionate in a statement.
Source note: AFP news report published on 20 July 2026 at 10:30:36 UTC.
Update
The EU said the investigation began in March 2024 and found products that did not meet EU environmental and safety standards.
The EU said illegal goods often stayed online for several weeks after detection and that some were recommended to users before removal.
An EU official said millions of products would reappear and that sellers of illegal goods could remain active on AliExpress.
The EU said AliExpress' brand authorisation system for counterfeit products was ineffective and understaffed.
The report says the fine is the largest imposed under the Digital Services Act, exceeding earlier fines against X and Temu.
The EU said AliExpress has 193 million users in the EU, compared with 156 million for Shein and 130 million for Temu.
A senior European official said the EU is AliExpress' biggest market and that Alibaba's global turnover last year was 122 billion euros.
AliExpress must pay the fine and submit a compliance plan by 20 October or risk periodic penalty payments.
EU tech chief Henna Virkkunen said AliExpress was cooperating actively with the European Commission and that the EU does not target platforms based on their origin.
Source note: AFP news report published on 20 July 2026 at 10:14:34 UTC.
Source
AFP news report published on .