EU fines AliExpress 550 million under Digital Services Act for illegal product risks
The European Commission on Monday fined AliExpress €550 million for violating the Digital Services Act (DSA) by failing to properly assess and mitigate risks related to illegal, unsafe, and counterfeit products sold on its platform.
The fine is the largest ever imposed under the DSA, which is part of the European Union's legal framework to regulate big tech companies. The European Commission found that AliExpress did not adequately assess risks related to illegal products, including unsafe toys and cosmetics, and counterfeit goods. The platform's recommendation and advertising systems were also found to promote illegal products.
According to the European Commission, AliExpress failed to carry out adequate risk assessments and did not take sufficient measures to reduce risks linked to illegal, unsafe, and counterfeit products. The investigation, launched in March 2024, revealed that the platform's systems for filtering illegal products were ineffective and that there were insufficient human resources to monitor reported products.
The European Commission has given AliExpress until October 20, 2026, to submit a compliance plan to address the violations. If the company fails to comply with the decision, it could face additional periodic fines.
The fine follows an investigation that began in March 2024 into AliExpress's compliance with the DSA. The European Commission had previously fined Temu, another online marketplace, €200 million for similar violations.
AliExpress has stated that it considers the fine to be disproportionate and does not adequately reflect the improvements the company has made.
The European Commission's decision underscores the importance of systematic risk identification and management to ensure consumer safety in online shopping. The DSA, which came into force in 2022, aims to hold large digital platforms accountable for the content and products sold on their platforms.
The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, and upholding the EU treaties. AliExpress is a Chinese online marketplace owned by the Alibaba Group.
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