EU fines AliExpress record €550 million over illegal goods

The European Union has imposed a record fine of €550 million on the Chinese online retailer AliExpress for allowing the sale of unsafe toys and counterfeit clothing on its platform. EU regulators stated that the company failed to adequately monitor its marketplace, violating consumer safety laws and intellectual property rights. This is the largest penalty ever issued by the EU to an e-commerce company under the Digital Services Act, a law designed to hold online platforms accountable for illegal content and products sold by third-party sellers. AliExpress, owned by the Alibaba Group, has been under increasing scrutiny in Europe for years. The EU investigation found that dangerous toys, such as those containing harmful chemicals, and counterfeit designer clothes were widely available on the site, posing risks to consumers and legitimate businesses. The fine is part of the EU's broader effort to enforce stricter rules on big tech and online marketplaces. AliExpress has not yet publicly responded to the ruling, but it now has a limited time to address the violations or face additional penalties. This case highlights the growing pressure on Chinese e-commerce firms to comply with European regulations as they expand globally.