EU Imposes Record Fine on AliExpress for Counterfeit Goods

Among other things, AliExpress is accused of unlawfully failing to remove counterfeit clothing, unsafe toys, and dangerous cosmetics from its platform for weeks on end. The company, which is part of the Alibaba Group, has reportedly not done enough to protect consumers in the EU from such products.

"We disagree with today's decision and the disproportionate fine," AliExpress stated in response to an inquiry. It said the decision does not adequately reflect the significant, proactive improvements the company has made. "We are carefully reviewing the decision and considering all available options."

Criticism Over Lack of Sanctions Against Retailers

According to the European Commission, the company has not done enough to protect consumers in the EU from illegal products. The European Commission found that some of the sellers who should have been penalized by AliExpress for selling illegal products on the online platform were able to avoid punishment. According to the statement, they were often able to continue operating their businesses.

According to the report, the online giant is also accused of not having enough staff to review potentially illegal products. According to the European Commission, the inspectors have too much work. Furthermore, the illegal products are even recommended or advertised before AliExpress removes them from the platform.

Tests conducted by the Brussels-based internet watchdog reportedly showed that, despite the company's monitoring efforts, a large number of counterfeit T-shirts, shoes, and unsafe children's toys were still in circulation.

EU: Counterfeit Goods on AliExpress Are a Particular Problem

The agency highlighted counterfeit goods being sold on the platform. According to the European Commission, sellers of such products undercut legitimate companies that invest in design, safety testing, and innovation. They force these companies to compete with products that circumvent these investments. EU Digital Commissioner Henna Virkkunen said that AliExpress’s conduct endangers consumers in Europe, but that it is also unfair to companies that comply with all laws.

AliExpress is one of the Asian online retailers that are also causing concern for the German retail sector. Alongside industry giant Amazon, platforms such as Temu, Shein, and AliExpress are playing an increasingly significant role in Europe. In the second quarter, these providers accounted for 5.3 percent of online retail sales in Germany—a record high, according to the German E-Commerce and Mail Order Association. They are particularly popular because of their low prices.

As a result, European customs authorities are facing a growing flood of packages from abroad. To counteract unwanted low-cost imports, the EU has introduced a three-euro fee this month on every package with a value of up to 150 euros.

AliExpress made concessions in 2025

In the proceedings against AliExpress—which have now resulted in a fine of millions—the Chinese online retailer had actually already made concessions a little over a year ago. The company wanted, in particular, to take action against illegal and potentially dangerous products such as medications and dietary supplements. At the time, the European Commission had initially accepted the company’s commitments but did not consider all of its concerns to have been addressed.

AliExpress now has until October 20 to submit a corrective action plan to Brussels. If the European Commission agrees with the proposed measures, it will set a deadline by which they must be implemented. If the Brussels authorities believe that AliExpress is not cooperating sufficiently on this matter, the EU could also impose daily fines.

Record fine—but far below what could have been

The proceedings are being conducted under the Digital Services Act (DSA), which has been in effect since February 2024 and is intended to be a powerful tool against online giants. Because of the DSA, major platforms must comply with significantly stricter regulations. Otherwise, they face severe penalties: fines of up to six percent of the group’s total global annual revenue—in this case, Alibaba’s—are possible.

While the fine imposed on AliExpress is the highest to date under the DSA, it is still far below the maximum possible fine of over seven billion euros, said an EU official. According to the European Commission, the Alibaba Group’s annual revenue under review was approximately 120 billion euros.

200-million fine against Temu at the end of May

Similar to the case against AliExpress, the case against the Chinese online marketplace Temu also recently resulted in a fine of millions. Just under two months ago, the European Commission demanded 200 million euros from the company—also for selling illegal products. The Brussels-based authority had stated that consumers in the EU were highly likely to encounter illegal items on Temu.