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The European Commission has fined Chinese online marketplace AliExpress €550mn for failing to do enough to prevent the sale of illegal products on its platform, the largest penalty yet under the bloc’s Digital Services Act.
Brussels on Monday said the shopping platform owned by Chinese tech group Alibaba had failed to do enough to reduce the risk of it being used to sell illicit products in the EU. Under the DSA, large online platforms must assess and address such risks.
“The spread of counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal and harmful products is not an unavoidable cost of shopping online — it is a failure by AliExpress to comply with its obligations under the Digital Services Act”, said Henna Virkkunen, the EU’s technology commissioner.
“Scale is not an excuse,” she added. “Risks must be identified and addressed systematically to ensure consumers can safely shop online.”
AliExpress has until the end of October to submit an action plan to the Commission setting out in detail how it will assess and mitigate the risks of illegal products being sold on its platform.
The company said on Monday that it was “firmly committed to meeting our obligations” and that it disagreed with the decision and the “disproportionate” fine.
Under the DSA, the EU can impose fines of up to 6 per cent of a group’s annual global revenue for non-compliance.
The fine comes amid a broader push against Chinese online retailers, particularly over low-cost imports.
More than nine out of 10 packages imported to the EU come from China. Brussels in May fined Chinese ecommerce marketplace Temu €200mn for breaches of the DSA related to the sale of illegal goods on its platform and is also investigating Shein over similar concerns.
The Commission’s investigation into AliExpress covered more breaches and a longer period than its Temu probe.
The EU has also introduced a flat customs duty of €3 per item on ecommerce parcels as part of efforts to stem the flow of low-value imports from China.
The decision comes as JD.com, one of China’s largest online retailers, faces an in-depth EU foreign subsidies investigation into its bid for German electronics retailer Ceconomy, which operates more than 1,000 stores across Europe under the MediaMarkt and Saturn brands.
EU foreign subsidy rules allow Brussels to block mergers and acquisitions involving companies subsidised by non-EU governments, and to exclude such businesses from public procurement.
