The EU Commission has levied a record 550 million euro fine on AliExpress for Digital Services Act violations, citing insufficient risk assessment, weak removal of illegal products, and ineffective enforcement against shady sellers.

AliExpress must submit an action plan by late October detailing concrete measures to remedy the breach and curb systemic risks.

The Digital Services Act is aimed at keeping online platforms safe, removing illegal content, enforcing platform terms, and protecting privacy and fundamental rights.

EU officials stress enforcement is origin-agnostic—the same standards apply to platforms regardless of whether they’re based in the EU, the United States, China, or elsewhere.

Investigations target platforms based on conduct, with numerous cases involving U.S. and Chinese platforms illustrating this conduct-focused approach.

The case fits into broader EU efforts to shield its market from perceived Chinese platform competition, alongside actions against Temu and ongoing measures like a minimum 3-euro tax on small imported parcels.

These measures aim to curb distortions from cheap direct imports, protect European retailers, and reshape the competitive dynamics of platforms like AliExpress, Temu, and Shein in Europe.

The decision underscores the EU’s ongoing push to regulate online marketplaces and ensure product safety and compliance across major platforms in the bloc.

The broader context includes EU concerns about Chinese overproduction and unfair subsidized competition, with ongoing trade-balance discussions with Beijing.

Brussels’ regulatory pressure on Asian-origin marketplaces continues, with Shein also under scrutiny alongside AliExpress.

German data show these platforms accounted for a record 5.3% of online retail revenue, driving higher consumer reliance on low-price imports and prompting tighter customs measures like the 3-euro charge per package.