European Commission fines AliExpress €550 million for DSA breaches

The European Commission has fined AliExpress €550 million for breaching the Digital Services Act (DSA), concluding that the platform failed to adequately assess and mitigate the systemic risks associated with illegal, unsafe and counterfeit products sold through its marketplace.

The Commission found that AliExpress underestimated the risks posed by its services and failed to implement effective safeguards to protect consumers across the EU.

According to the Commission, AliExpress failed to adequately assess the effectiveness of its content moderation systems or allocate sufficient human resources to review illegal products.

Investigators also found that the platform’s recommender and advertising systems continued promoting illegal products before they were removed, while its risk assessments relied on insufficient quantitative evidence to measure the effectiveness of its mitigation measures.

The investigation also identified significant weaknesses in AliExpress’ risk mitigation measures. Counterfeit goods, unsafe toys and dangerous cosmetics remained available for extended periods, while traders repeatedly bypassed compliance checks through product miscategorisation.

The Commission further concluded that the platform failed to consistently sanction sellers of illegal products and that its brand authorisation system did not effectively prevent counterfeit listings.

AliExpress must submit an action plan by 20 October 2026 explaining how it will comply with the DSA.

The European Board for Digital Services will review the proposal before the Commission adopts a final implementation decision. Continued non-compliance could result in periodic penalty payments as the Commission monitors implementation.

Why does it matter?

The decision is one of the most significant enforcement actions taken under the Digital Services Act to date and demonstrates the European Commission’s willingness to impose substantial financial penalties on platforms that fail to manage systemic risks. It reinforces the DSA’s preventive approach, which requires very large online platforms to identify, assess and mitigate risks before harm occurs rather than relying solely on the removal of illegal content after the fact.

The case also signals that the Commission expects platforms to back their risk assessments with robust evidence, effective moderation systems and adequate human oversight. Future DSA enforcement is therefore likely to focus not only on the presence of illegal content but also on whether companies can demonstrate that their governance and risk management processes are working effectively.

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