EU slaps 550 million fine on AliExpress over platform violations
Usagevpn.com – The European Commission has officially announced that the EU slaps 550 million fine on AliExpress. This substantial penalty addresses the e-commerce giant’s persistent shortcomings in managing risks associated with illegal, unsafe, and counterfeit merchandise sold through its digital marketplace. The ruling was delivered on Monday, July 20, 2026, marking a pivotal moment for cross-border trade within the European Union. The decision underscores the bloc’s commitment to enforcing stricter standards for online platforms operating within its borders.
Key Findings from the Investigation
A major issue identified by regulators was the inadequacy of the moderation team. The Commission noted that AliExpress significantly underestimated the volume of products requiring review. Consequently, human moderators struggled to keep pace with the sheer scale of daily listings. This operational backlog allowed problematic items to slip through the cracks undetected for extended periods. The platform’s product compliance checks were also found to be vulnerable to manipulation, with malicious traders misclassifying goods to exploit less stringent requirements.
Furthermore, the investigation revealed that dangerous items such as unsafe toys and hazardous cosmetics remained available for purchase. In several instances, these products stayed online for weeks even after being flagged by automated systems. Another critical finding concerned the enforcement of existing rules. Despite having a penalty policy, AliExpress allowed offending stores to continue operating without meaningful consequences. Additionally, the brand authorisation system intended to block counterfeit goods proved insufficient. Sellers found ways to bypass these safeguards, listing fake items under the guise of legitimate brands.
Moving forward, AliExpress must present a comprehensive action plan by 20 October 2026. This document will outline the steps the company intends to take to rectify the identified deficiencies. The EU executive will review this proposal within two months to determine if additional measures are necessary. If the plan is deemed inadequate, the Commission reserves the right to impose further sanctions or require structural changes to the platform’s operations.
In response to the ruling, AliExpress expressed disagreement with the severity of the penalty. They argued that the fine does not accurately represent their current efforts to improve user safety. The company emphasized that they have already invested substantial resources into risk assessment and mitigation protocols. However, regulators maintained that
