In July 2023, the European Commission imposed a significant fine of €550 million on the online marketplace AliExpress, owned by Alibaba, for its failure to comply with the EU's Digital Services Act (DSA). The investigation revealed that AliExpress did not adequately assess the risks associated with the sale of illegal, unsafe, or counterfeit products on its platform. The Commission found that the platform lacked sufficient staff to review potentially illegal products and inadequately evaluated how its recommendation and advertising systems contributed to the spread of these products. Furthermore, the system designed to detect illegal products was deemed ineffective, and the enforcement of penalties against traders selling such products was insufficient. The Commission's decision followed a lengthy investigation that began in 2023, highlighting the need for e-commerce platforms to take responsibility for the safety of their offerings. AliExpress has until October 20, 2026, to submit an action plan to address these issues, after which the European Board for Digital Services will review the plan and provide feedback. This fine comes shortly after a similar penalty was imposed on another platform, Temu, which was fined €200 million for comparable DSA violations. The EU's actions reflect a growing concern over the safety of online shopping and the need for stricter compliance with regulations to protect consumers from counterfeit and dangerous products. The Commission emphasized that the presence of illegal products is not an acceptable risk of online shopping and that platforms must systematically identify and mitigate these risks to ensure consumer safety.
