The European Commission announced on July 20 that AliExpress (AliExpress), the cross-border e-commerce platform operated by Alibaba (09988-HK), was hit with a heavy fine of €550 million (about $629 million) for violating the Digital Services Act (DSA) rules on content moderation and consumer safety. It is the largest fine ever issued by the EU against a major online platform since the DSA was fully implemented.
EU DSA Ruling: €550 Million Surpasses X and Temu
According to a July 20, 2026 European Commission announcement, the €550 million penalty is the highest fine against large online platforms since the DSA fully took effect. It exceeds the earlier penalties issued against Elon Musk’s X platform (€120 million) and the Chinese e-commerce platform Temu (€200 million).
The Commission said it included the DSA’s “novelty” as a mitigating factor when calculating the fine. Without this factor, under the DSA rules, the maximum fine could reach up to 6% of the company’s total worldwide annual turnover. Henna Virkkunen said in the statement: “AliExpress has 193 million users in Europe. This kind of regulatory gap not only poses dangers to consumers, but is also deeply unfair to other companies that comply with the rules.”
DSA Violations: Counterfeits Stayed for Weeks, Ad System Worsens Spread, Brand Authorization System Underperforms
Based on the European Commission’s investigation, the main DSA violations alleged against AliExpress are as follows:
Illegal goods lingering issue: The platform allows counterfeit goods, unsafe toys, and dangerous cosmetics to remain on the platform for up to several weeks.
Advertising and recommendation systems: AliExpress’s advertising and recommendation algorithms were accused of exacerbating the spread of illegal goods.
Brand authorization system failure: The “brand authorization” system intended to prevent counterfeits suffers from insufficient staffing and poor effectiveness, making it easy for merchants to bypass.
Punitive policies not implemented: Although AliExpress has punitive policies, it failed to implement and enforce them, allowing multiple non-compliant merchants to continue selling illegal goods.
Submit a remediation plan by Oct. 20; EU review in December
Under the Commission’s ruling, AliExpress must submit a remediation measures plan by October 20, 2026, explaining how it will improve its risk assessments and mitigation mechanisms. The EU will review the plan in December 2026, and if it still determines that the measures do not meet DSA standards at that time, AliExpress may face further fines.
As of the time of reporting on July 20, 2026, Alibaba had not publicly responded to the ruling.
FAQ
What is the amount of the EU’s DSA fine for AliExpress, and when was it announced?
According to the European Commission’s July 20, 2026 announcement, AliExpress was fined €550 million (about $629 million) for violating the Digital Services Act. It is the largest fine since the DSA was fully implemented, exceeding X (€120 million) and Temu (€200 million).
What follow-up steps does AliExpress need to take after the EU’s ruling?
Under the EU Commission’s ruling, AliExpress must submit a remediation measures plan by October 20, 2026, explaining how it will improve its risk assessments and mitigation mechanisms. The EU will review the plan in December 2026, and if it does not meet DSA standards, it may face additional fines.
What are the main reasons for AliExpress’s DSA violations this time?
According to the EU investigation, the main causes include: counterfeits, unsafe toys, and dangerous cosmetics remaining on the platform for weeks; the advertising system exacerbating the spread of illegal goods; and the “brand authorization” system having insufficient staff and underperforming effectiveness, making it easy for merchants to bypass.
