According to Reuters, the regulator concluded that AliExpress failed to comply with the DSA’s requirements to assess and mitigate the risks associated with the distribution of illegal products. The company did not allocate sufficient resources to verify these risks and overestimated the effectiveness of its own mechanisms for detecting prohibited goods.
Brussels also criticized the platform’s recommendation algorithms and advertising systems, which, according to the regulator, contributed to the spread of illegal products. As a result, counterfeit goods, dangerous toys, and cosmetics were able to remain on sale for several weeks.
The European Commission deemed the system of sanctions against violators and the mandatory “brand authorization” program, designed to combat counterfeiting, to be ineffective. According to the regulator’s assessment, sellers were able to easily circumvent existing restrictions.
“This is very dangerous for consumers and unfair to companies that comply with our rules,” Henna Wirkkunen, European Commissioner for Technological Sovereignty, Security, and Democracy, told reporters.
According to her, last year AliExpress had 193 million users in Europe, compared to 156 million for Shein and 130 million for Temu.
AliExpress stated that it disagrees with the European Commission’s decision. The company called the fine disproportionate and stated that it does not reflect the measures already implemented to strengthen oversight of the platform. The marketplace reported that it is reviewing the decision and considering all available options for further action.
The fine is the third major penalty imposed by the European Commission under the DSA. Its amount significantly exceeds the penalties imposed on the social network X, which was fined €120 million, and Temu, which paid €200 million for violations of the law.
At the same time, the European Commission noted that it took the novelty of the legislation into account as a mitigating factor. Otherwise, the fine could have been higher. Under the DSA, the maximum penalty can reach 6% of a company’s global annual turnover.
