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AliExpress fined record €550 million for digital services act breach

The European Commission has fined AliExpress €550 million for breaching the Digital Services Act (DSA), the largest penalty issued under the regulation to date. The e-commerce platform failed to properly police illegal, unsafe and counterfeit goods.

The European Commission found that AliExpress fell short of its DSA obligations in several key areas. The platform did not properly evaluate whether it had sufficient staff to review potentially illegal listings, and it overestimated the effectiveness of its own detection systems. AliExpress had also inadequately assessed how its advertising and recommendation systems amplified the spread of illegal products, with many items being promoted or advertised prior to their removal.

The European Commission further concluded that AliExpress failed to properly measure whether its content moderation system was preventing illegal products from reappearing after they had been taken down. Enforcement of its own policies against infringing sellers was also found to be weak, allowing non-compliant stores to keep trading. Product compliance checks could also reportedly be circumvented by mis-categorising items.

AliExpress is now required to submit a formal action plan by October 2026, setting out how it intends to remedy the breaches identified. The European Board for Digital Services will then have one month to deliver its opinion on the plan, after which the European Commission has a further month to adopt a final decision and set a timeline for implementation.

The decision marks a significant escalation in the European Commission’s enforcement of the DSA against large online platforms, and signals that further scrutiny of e-commerce marketplaces operating in the EU is likely to continue, which is sure to be welcomed by many rights holders.

Useful link

European Commission press release, 20 July 2026, “Commission fines AliExpress €550 million for breaching the Digital Services Act”: dycip.com/ec-news-aliexpress-fine

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