The European Union has imposed a €550 million ($629 million) fine on Chinese e-commerce giant AliExpress for failing to adequately combat the sale of illegal, unsafe, and counterfeit products on its platform. The penalty is the largest ever issued under the EU's Digital Services Act (DSA).

European Commission Vice President Henna Virkkunen stated on Monday that the spread of counterfeit clothing, unsafe toys, dangerous cosmetics, and other illegal goods is not an unavoidable cost of online shopping, but a failure by AliExpress to comply with its DSA obligations.

AliExpress announced it will appeal the fine, calling it 'disproportionate' and excessive. The company must pay the penalty and submit a plan to address the breaches by October 20, after which EU regulators may impose further sanctions.

A year ago, AliExpress agreed to tighten controls on illegal and potentially dangerous items such as medicines and supplements. However, the European Commission said these measures did not fully resolve its broader concerns regarding content moderation, transparency, and risk management.

The Commission accused AliExpress of failing to adequately assess and mitigate systemic risks, including the spread of illegal content. AliExpress countered that the decision 'ignores our sound risk management framework and the significant, proactive enhancements we have made.'

According to the EU, AliExpress has 193 million users in the bloc, ahead of rivals Shein (156 million) and Temu (130 million). Virkkunen noted that one in five Europeans shops monthly on Shein, Temu, or AliExpress.

Source: www.dw.com