AliExpress said it plans to\u00a0appeal a penalty imposed by European Union (EU) regulators, who\u00a0found shortcomings in the firm’s efforts to curb illegal, unsafe and counterfeit goods.<\/p>\n
The largest Chinese e-commerce platform<\/a> in the EU, AliExpress, has been fined \u00a0\u20ac550 million ($629 million) for failing to tackle sales of illegal, unsafe and counterfeit products.<\/p>\n “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,” European Commission<\/a> Vice President Henna Virkkunen said on Monday.<\/p>\n It is the largest fine ever imposed under the Digital Services Act (DSA)<\/a>, which sets out clear rules for online services in the EU, targeting especially very large online platforms.<\/p>\n AliExpress said it will appeal the “disproportionate” fine, saying it considers the penalty excessive.<\/p>\n AliExpress faces October 20 deadline<\/p>\n The online retail giant, which belongs to the Alibaba Group, must pay the fine and has until October 20, to submit a plan to address the breaches. EU regulators will then review the plan, after which the company could face further penalties.<\/p>\n A year ago, AliExpress agreed to tighten controls on illegal and potentially dangerous goods, such as medicines and supplements. But the European Commission said the measures did not fully resolve its broader concerns.<\/p>\n The commission said AliExpress:<\/p>\n \tFailed in some cases to penalize traders selling illegal products, allowing them to continue operating on the platform. But AliExpress said the EU’s decision “ignores our sound risk management framework and the significant, proactive enhancements we have made.”<\/p>\n The company also said it has worked with the Commission to meet its “evolving expectations.”<\/p>\n DSA used to\u00a0rein in Big Tech\u00a0<\/p>\n According to the EU, AliExpress has 193 million users in the bloc, ahead of online fashion giant Shein and retailer Temu, which have 156 million and 130 million users, respectively.<\/p>\n “One in five Europeans say they shop once a month from Shein, Temu and AliExpress,” Virkkunen said.<\/p>\n Temu was fined \u00a0\u20ac200 million\u00a0in May<\/a>, while Elon Musk’s social media platform X was fined in December<\/a> last year, both for DSA violations.<\/p>\n Edited by:\u00a0Jenipher Camino Gonzalez<\/p>\n
\n\tLacked sufficient staff to effectively review potentially illegal listings.
\n\tInspectors faced excessive workloads, hampering oversight efforts.
\n\tSome illegal products were recommended or promoted before being removed from the platform.<\/p>\n