EU Imposes Record $629 Million Fine on AliExpress for Selling Dangerous Counterfeit Goods

The European Union has imposed a record fine of 550 million euros (approximately $629 million) on AliExpress, the popular e-commerce platform owned by Alibaba Group. The penalty, announced on July 20, 2026, follows repeated failures by AliExpress to prevent the sale of illegal, counterfeit, and hazardous products on its site, which remained available for weeks. This is the third fine issued under the EU's groundbreaking Digital Services Act (DSA), which requires large online platforms to actively combat harmful content and products.

The EU regulator criticized AliExpress for inadequate risk assessment, overestimating the effectiveness of its filtering systems, and ineffective punishment of offending sellers, allowing continued illegal sales. The platform’s brand approval system also failed due to chronic understaffing, enabling easy circumvention by sellers. The EU has set a deadline of October 20 for AliExpress to present significant corrective measures, with potential further sanctions if these are deemed insufficient by December.

AliExpress responded by opposing the fine, calling it excessive and not reflective of its existing protections and improvements, and is currently reviewing legal options. The fine comes amid AliExpress’s struggles with declining sales in China and efforts to attract international customers, including recent changes to shipping and VAT policies in Israel to improve user experience.

The EU highlighted that one in five Europeans shops monthly on platforms like AliExpress, Shein, or Temu, with AliExpress alone having 193 million European users last year. The investigation revealed that secret social media groups facilitate the sale of counterfeit goods by sharing codes to bypass platform filters, exposing consumers to dangerous chemicals and unsafe products. While Israel lacks comprehensive controls to block all counterfeit imports, customs and health authorities conduct random inspections, especially on products posing health risks. Consumers can dispute counterfeit listings on AliExpress for refunds, but many counterfeit items evade detection.

This fine significantly surpasses previous EU penalties under the DSA, including 120 million euros on X (formerly Twitter) and 200 million euros on Temu. AliExpress had avoided a heavier fine last year by agreeing to address illegal content. The coming months will determine whether AliExpress’s global and local reforms can restore its standing or if harsher penalties will follow, further damaging its position in Europe.