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World
Herz — World Desk · · 30s summary · 3 min read
The European Commission fined AliExpress €550 million on July 20, 2026—the largest penalty ever imposed under the DSA (Digital Services Act, the EU regulation adopted in 2022 to combat illegal online content). AliExpress, the EU's leading online marketplace with 193 million users and owned by Chinese firm Alibaba, was sanctioned for allowing millions of illegal products to circulate: counterfeit goods, dangerous toys, harmful cosmetics. Even after detection, these items remained online for weeks. AliExpress is contesting the fine, calling it "disproportionate."
The European Commission imposed a €550 million fine on AliExpress on July 20, 2026, according to The Guardian. It is the harshest penalty ever imposed under the DSA—EU Regulation 2022/2065 on Digital Services, adopted in October 2022 to combat the spread of illegal content online. AliExpress, an e-commerce platform owned by Chinese technology company Alibaba, is the EU's largest online marketplace with 193 million users.
The Commission found that AliExpress lacked sufficient personnel to assess the legality of products for sale. Some items were reviewed only for 'dozens of seconds.' The platform's recommendation systems also promoted illegal products, and its internal risk assessments failed.
Millions of illegal products—counterfeit goods, dangerous toys, harmful cosmetics, non-compliant clothing and kitchenware—circulated on the platform. Even after detection, these items remained online for several weeks. Products that were removed reappeared in large quantities.
The Commission's investigation lasted over two years. During this period, AliExpress had the opportunity to correct its compliance and risk assessment procedures without doing so. The platform displayed terms of use that appeared compliant while allowing sellers to easily offer non-compliant products.
The platform's size is no excuse. AliExpress has failed to meet its DSA obligations.
— Henna Virkkunen, Executive Vice-President of the European Commission for Technological Sovereignty, Security and Democracy
AliExpress immediately rejected the sanction, calling it 'disproportionate' and stating that it does not reflect its established compliance framework or proactive improvements. The platform said it is examining all available options.
In May 2026, Temu was fined €200 million for selling illegal and dangerous products—the first major DSA fine against an online marketplace. X (formerly Twitter) was fined €120 million for a misleading verification badge and lack of advertising transparency.
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EU investigations into products sold on major platforms, including Shein, illustrate the systemic scale of the problem: 65% of cosmetics, 63% of dietary supplements, and 60% of personal protective equipment (helmets, safety shoes) tested did not comply with European standards.
AliExpress said it is examining 'all available options' without specifying whether the platform intends to appeal to European courts. The Commission has not communicated on potential additional corrective measures beyond the fine. Temu remains under investigation for additional issues that could result in a supplementary fine.
The DSA (Digital Services Act), or EU Regulation 2022/2065, is a European law adopted in October 2022 requiring large platforms to take measures to combat illegal content and products online. Fines can reach 6% of global annual turnover.
The DSA ceiling is 6% of global turnover—potentially several billion euros for AliExpress (estimated revenue ~€122 billion). The Commission applied less than 1% of this amount. The calibration criteria were not detailed publicly.
The platform said it is examining 'all available options' without announcing a formal appeal. No legal challenge has been confirmed at this stage.
In May 2026, Temu was fined €200 million for selling illegal and dangerous products. X (formerly Twitter) received €120 million for a misleading verification badge. Temu remains under investigation for additional issues.
The Commission found that removed products reappeared in large quantities and that illegal items detected remained online for several weeks. Corrective measures imposed on AliExpress beyond the fine are not detailed in available information.
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