The European Commission has issued a record-breaking €550 million fine against the Chinese retail platform AliExpress. Regulators determined that the company failed to meet its legal requirements to identify and mitigate the presence of harmful or illicit items, including counterfeit apparel, dangerous cosmetics, and unsafe toys.
A two-year investigation by the Commission concluded that the platform's internal safeguards were insufficient. Officials noted that the company's detection mechanisms were ineffective, often allowing prohibited items to remain accessible for weeks. Furthermore, investigators found that the platform's compliance protocols were easily bypassed and that penalties for merchants violating safety standards were not consistently enforced.
Henna Virkkunen, the EU's tech chief, emphasized that the proliferation of such goods is not an inherent risk of e-commerce, but rather a failure by the company to uphold its regulatory duties. This penalty represents the largest fine levied to date under the Digital Services Act, which mandates that major technology firms actively combat illegal and harmful content.
AliExpress, a subsidiary of the Alibaba Group, maintains a user base of 193 million in Europe. In response to the ruling, the company expressed disagreement with the decision, labeling the fine as "disproportionate." The retailer stated that it remains dedicated to consumer safety and intends to challenge the penalty through an appeal. The company is required to submit a comprehensive plan by October 20 detailing how it intends to address these regulatory breaches.
Source: BBC News
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