EU Imposes Record €550 Million Fine on AliExpress
The EU has fined AliExpress a record €550 million under the Digital Services Act, citing inadequate measures against counterfeit goods. The platform is required to submit a corrective action plan by October 20, or face further penalties. This signifies a stricter regulatory era for compliance responsibilities of cross-border e-commerce platforms.
What are the key facts?
- 1Fine amount: €550 million (approximately $629 million)
- 2Violation reason: Failure to effectively prevent the sale of illegal, unsafe, and counterfeit products
- 3Regulatory basis: Digital Services Act (DSA)
- 4Correction deadline: Submit plan by October 20, 2026
What happened?
The European Commission has fined AliExpress €550 million as the platform failed to adequately curb the circulation of illegal, unsafe, and counterfeit goods. Regulatory bodies criticized its insufficient review resources, and the recommendation algorithms were said to promote the dissemination of non-compliant products. AliExpress needs to submit remedial actions by October 20 and will be subject to subsequent reviews.
What does this mean for cross-border sellers?
Compliance standards on the platform will significantly increase, sellers need to strictly check product compliance to avoid listings being removed or accounts being suspended due to platform rectifications.