AliExpress hit with record $625M fine after failing to make EU-ordered fixes

Key Points:

• The European Commission fined AliExpress over $625 million for failing to adequately address the sale of illegal, unsafe, and counterfeit products on its platform, marking the largest penalty under the Digital Services Act (DSA) to date.
• Investigations revealed AliExpress had insufficient staff to remove flagged products, allowing millions of illegal items to reappear and remain online for extended periods, while also enabling sellers to evade detection by miscategorizing goods.
• The platform's recommendation and advertising systems were found to promote illegal products, exacerbating consumer exposure, and its brand authorization and penalty systems were ineffective and understaffed.
• AliExpress was previously ordered in June 2025 to comply with the DSA but failed to implement necessary changes, leading to the fine being deemed proportionate to the serious nature of violations and delayed corrective actions.
• AliExpress expressed surprise at the fine and plans to appeal, claiming significant efforts in risk management, while the EU tech chief emphasized that large scale does not excuse non-compliance with legal obligations to protect consumers.