€550 Million Fine for AliExpress: Why Unsafe Goods Are Still Being Sold Online.

European Commission Slaps AliExpress with Historic Fine

According to Мінфін — Крипто/Фінанси: The European Commission has fined AliExpress €550 million for failing to adequately combat the sale of illegal products on its platform. This penalty is the largest ever imposed under the Digital Services Act (DSA), highlighting the serious consequences for e-commerce giants that neglect their regulatory duties. The investigation into AliExpress’s compliance with the DSA began on March 14, 2024.

According to Henna Virkkunen, a European Commission representative, the proliferation of counterfeit clothing, hazardous toys, dangerous cosmetics, and other illicit or harmful items is not an inevitable cost of online shopping. Instead, it stems directly from AliExpress’s failure to meet its obligations under the DSA. The Commission stressed that these are not just minor oversights but systemic issues that endanger consumers.

“The spread of counterfeit clothing, dangerous toys, hazardous cosmetics, and other illegal and harmful goods is not an unavoidable part of online shopping—it is a result of AliExpress not complying with its responsibilities.”

Henna Virkkunen, European Commission Representative

AliExpress must submit a corrective action plan to the European Commission by the end of October 2024. If it fails to do so, the EU could impose periodic fines of up to 6% of the company’s global annual revenue. This case has raised alarms among consumers and experts about the safety of products sold on the platform and underscores the critical need for strict e-commerce regulations.

A Warning Shot for All Online Marketplaces

This ruling serves as a clear warning to other online platforms about the importance of adhering to e-commerce laws. The European Commission is intensifying its oversight of regulatory compliance, a move that could reshape operations not only for AliExpress but for the entire digital marketplace. As demand for online shopping continues to surge, the responsibility for ensuring product safety has never been more pressing.