The European Commission has issued a record-breaking €625 million fine against AliExpress for systematically failing to remove illegal and hazardous products from its platform, including unsafe toys and dangerous cosmetics, violating the Digital Services Act.
- AliExpress failed to prevent repeated listings of illegal and unsafe products.
- Content moderation was insufficient and exceeded capacity limits.
- Platform algorithms amplified exposure to dangerous goods.
What happened
The European Commission fined AliExpress over $625 million for breaching the Digital Services Act by not adequately removing illegal, unsafe, and counterfeit products from its online marketplace. Investigations revealed that AliExpress lacked the necessary staff to properly monitor and evaluate flagged listings, resulting in dangerous items such as unsafe toys and cosmetics remaining available to consumers for extended periods.
Further scrutiny found that sellers could bypass moderation by mislabeling products, and AliExpress's brand authorization system was ineffective and understaffed. Despite prior warnings and an order to comply by June 2025, AliExpress did not make sufficient improvements, prompting the unprecedented fine.
Why it matters
This fine marks the largest imposed under the Digital Services Act, signifying the Commission's increased commitment to enforcing consumer safety and product authenticity on e-commerce platforms. With millions of Europeans shopping on platforms like AliExpress monthly, failure to control illegal listings jeopardizes consumer trust and safety on a large scale.
Moreover, the case highlights how algorithmic recommendations can unintentionally promote unsafe goods, emphasizing the need for platforms to evaluate not just content moderation but also the impact of their technological systems on product exposure. The ruling sets a strong precedent for how regulators may hold large global marketplaces accountable for their compliance with EU laws.
What to watch next
AliExpress has announced its intention to appeal the decision, claiming the fine is disproportionate and contesting the European Commission’s findings about its risk management efforts. Market observers will closely monitor the outcome of this appeal to understand how strictly the DSA will be applied in cases involving global e-commerce giants.
Regulators are likely to increase scrutiny of other large online platforms, particularly those with cross-border operations in the EU, to ensure compliance with product safety obligations. The case also raises questions about how moderation staffing and algorithmic systems can be improved to prevent widespread circulation of dangerous goods in online marketplaces.