AliExpress hit with record €550m EU fine for illegal product sales

AliExpress has received a record €550 million fine from European Union regulators, marking the highest penalty ever imposed under the Digital Services Act. According to reports, the investigation lasted two years and centred on the platform's handling of illegal product sales. The announcement indicated that the e-commerce marketplace failed to adequately prevent the distribution of counterfeit and prohibited goods through its platform, resulting in the unprecedented enforcement action.

This penalty represents a significant escalation in EU regulatory pressure on large digital marketplaces. The Digital Services Act, which came into full force in 2024, grants European authorities broad powers to fine non-compliant platforms up to 6 percent of global annual revenue. The AliExpress decision signals that regulators are prepared to deploy these maximum enforcement tools against major platforms failing to implement adequate safeguards. For traders and investors in fintech and e-commerce sectors, the ruling underscores intensifying compliance costs and operational risks for marketplace operators. The case demonstrates that EU authorities prioritise consumer protection and intellectual property enforcement, particularly regarding counterfeit goods. Market participants should anticipate similar investigations targeting other major digital platforms, potentially reshaping cost structures and competitive dynamics across cross-border commerce and logistics services aligned with these businesses.

Source: BBC News