The European Commission has issued a €550 million fine against the retail platform AliExpress, citing the company's failure to adequately control the sale of illegal and counterfeit goods. An investigation by the Commission revealed that large quantities of hazardous items, including unsafe toys and dangerous cosmetics, remained available on the platform despite moderation efforts. In some instances, these prohibited products stayed online for weeks after being flagged.
Regulators found that the platform's product compliance checks were susceptible to manipulation. Malicious traders reportedly exploited these vulnerabilities by misclassifying goods to bypass stricter requirements. Furthermore, the Commission determined that AliExpress failed to effectively enforce its own penalty policies; stores that were sanctioned for selling illicit merchandise were often allowed to continue operating on the platform.
This enforcement action follows the recent introduction of a €3 flat duty on parcels valued under €150, which were previously permitted to enter the European Union duty-free. This shift in trade policy is expected to create significant challenges for the business models of major Chinese online retailers, including AliExpress, Shein, and Temu.
AliExpress is required to submit an action plan to the European Commission by 20 October 2026, detailing the specific steps it will take to address these regulatory concerns. The EU executive body will then have two months from the receipt of the plan to determine if additional measures are necessary. As of the time of the announcement, AliExpress had not provided a response to requests for comment.
