<\/p>\n
Alibaba Group Holding\u2019s e-commerce service was fined \u20ac550 million ($629 million) by the European Union for selling illegal products in the largest penalty under the bloc\u2019s content moderation rulebook.<\/p>\n
AliExpress failed to properly evaluate unsafe or counterfeit products sold on its platform and didn\u2019t take steps to enforce its penalty policy against vendors that repeatedly violated it, the European Commission, the EU\u2019s executive arm, said in a statement Monday.<\/p>\n
The commission had been investigating the Chinese company for a list of grievances under the Digital Services Act, or DSA, since 2024 and escalated the probe last year.<\/p>\n
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Europe has become increasingly assertive with the DSA since it fully took effect in 2024, targeting social media companies and online marketplaces with investigations and penalties. The first two fines levied under the law were \u20ac120 million against Elon Musk\u2019s X in December and \u20ac200 million against Chinese e-commerce giant Temu in May.<\/p>\n
AliExpress sold products which didn\u2019t meet EU environmental and safety standards, according to Henna Virkkunen, the commission\u2019s executive vice president in charge of tech matters. \u201cThis is very dangerous for our consumers but also unfair for companies that are complying with all of our rules,\u201d she told reporters in a briefing.<\/p>\n
\u201cWe disagree with today\u2019s decision and the disproportionate fine, which does not adequately reflect our established framework and the significant, proactive enhancements we have made,\u201d an AliExpress spokesperson said in a statement. The company is reviewing the decision and will consider its options, the spokesperson added.<\/p>\n
The decision was based on 2023 and 2024 risk assessment reports, according to the commission statement. Regulators took into account the novelty of the DSA as a mitigating factor when calculating the fine.<\/p>\n
AliExpress has until October 20 to present a plan to remedy its failure to assess and mitigate systemic risks. Regulators will then have two months to adopt a final decision and set up a time frame to implement the plan.<\/p>\n
The DSA requires companies with more than 45 million EU users to survey and mitigate risks arising on their online platforms. Violations can lead to fines as high as 6% of a company\u2019s annual global sales.<\/p>\n
Alibaba earned some $144 billion in revenue in its last fiscal year.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#Alibaba #fined #record #550m #illegal #sales<\/p>\n","protected":false},"excerpt":{"rendered":"
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