AliExpress Faces $629 Million EU Fine Over Illegal and Counterfeit Product Sales

The European Union has imposed a record €550 million ($629 million) fine on AliExpress, alleging that the marketplace failed to adequately prevent the sale of illegal, unsafe and counterfeit products.

The penalty, the largest issued under the Digital Services Act (DSA) to date, exceeds previous fines levied against Temu and X and could signal a new era of regulatory scrutiny for global e-commerce platforms.

European regulators argue that AliExpress underestimated the risks posed by counterfeit goods, lacked sufficient moderation resources and relied on ineffective systems to identify and remove problematic listings.

The Commission also criticized the platform’s recommendation and advertising engines, claiming they amplified the spread of illegal products, including counterfeit clothing, unsafe toys and potentially harmful cosmetics.

Why the Ruling Carries Implications Well Beyond AliExpress

Europe was home to roughly 193 million AliExpress users last year, more than either Temu or Shein, and regulators have made clear that they intend to hold large digital marketplaces responsible for what third-party sellers offer on their platforms.

AliExpress has until October 20 to present a remediation plan or risk additional penalties.

For retailers, brands and marketplace operators, the case raises larger questions about platform accountability.

As cross-border e-commerce continues to grow, governments are increasingly weighing how much responsibility marketplaces should bear for policing counterfeit goods, protecting consumers and ensuring fair competition.

Some industry observers believe stricter oversight could level the playing field for retailers that invest heavily in compliance and product safety, while others warn that heightened regulation may increase costs and create new barriers for online sellers.

Discussion questions

• Should online marketplaces be held legally responsible for counterfeit and unsafe products sold by third-party merchants?
• Will tougher regulations improve consumer trust in e-commerce, or will they simply make it harder for marketplaces to operate efficiently?
• How should retailers and brands balance marketplace growth with the need for stronger product oversight?