EU Slaps AliExpress With €550m Fine for Illegal Goods Violations

The European Commission penalizes AliExpress for failing to curb sales of counterfeit and unsafe products under Digital Services Act rules. The European Commission has imposed a €550m ($628.06m) fine on AliExpress for inadequate risk assessments tied to illegal goods on it

The European Commission penalizes AliExpress for failing to curb sales of counterfeit and unsafe products under Digital Services Act rules.

The European Commission has imposed a €550m ($628.06m) fine on AliExpress for inadequate risk assessments tied to illegal goods on its platform. The penalty stems from failures to ensure sufficient staffing for content moderation and overstated effectiveness of detection systems, according to the regulator.

Investigations revealed AliExpress relied on a single quantitative measure that did not prevent banned products from reappearing in modified forms. The EC found large volumes of counterfeit clothing, unsafe toys, and dangerous cosmetics remained available despite moderation efforts, with recommendation tools amplifying their spread.

The fine underscores stricter enforcement of the Digital Services Act, which mandates platforms assess and mitigate risks tied to illegal content. AliExpress’s compliance gaps highlight broader regulatory scrutiny of e-commerce marketplaces operating in the EU.

Leave a Reply

Your email address will not be published. Required fields are marked *