European Commission fines AliExpress 550 million euros over safety regulation violations

The European Commission has imposed a 550 million euro fine on the e-commerce platform AliExpress for failing to comply with the Digital Services Act (DSA). Investigations revealed significant inadequacies in the platform's oversight systems regarding the sale of illegal, hazardous, and counterfeit products. The Commission identified that AliExpress overestimated its surveillance capabilities and lacked sufficient human moderators to handle the large volume of listings. Furthermore, the platform's recommendation and advertising algorithms were found to promote illegal items, some of which remained visible even after being flagged. The report highlights that dangerous children's toys, substandard cosmetics, and counterfeit goods were widely available to European consumers. This enforcement action coincides with the European Union's recent introduction of a 3 euro fee on small packages valued under 150 euros imported from outside the EU. These measures are expected to significantly impact the operations of major e-commerce platforms including AliExpress, Shein, and Temu. AliExpress has been criticized for failing to adequately assess risks associated with the distribution of harmful products within the European market.