EU Commission Fines AliExpress €550 Million for DSA Violations, Highest Penalty on Record

According to the EU Commission, on July 20, AliExpress was fined €550 million (approximately $629 million) for violating the Digital Services Act (DSA) regarding content moderation and consumer safety. This marks the highest penalty imposed by the EU on a major online platform since the DSA's full implementation.

The commission found that AliExpress failed to effectively assess and mitigate the spread of illegal, unsafe, and counterfeit products on its platform, allowing counterfeit goods, unsafe toys, and dangerous cosmetics to remain online for weeks. The platform's advertising and recommendation systems were cited for amplifying illegal content, while its brand authorization system suffered from insufficient staffing and poor enforcement. The company must submit a remediation plan by October 20 and faces potential additional fines if measures remain non-compliant.