Technology By

EU fines AliExpress a record €550 million for selling counterfeit and dangerous goods

EU fines AliExpress a record €550 million for selling counterfeit and dangerous goods

The European Commission has slapped online marketplace AliExpress with a record fine of €550 million — the largest penalty ever issued under the Digital Services Act (DSA), the EU regulation governing large online platforms.

According to Brussels, the company had long underestimated the risks tied to selling illegal goods. The investigation found that AliExpress freely allowed the sale of counterfeit products, hazardous toys, risky cosmetics and other items that failed to meet European safety and consumer-protection standards.

The European Commission noted that AliExpress had overestimated the effectiveness of its own automated systems for detecting banned products, while the team responsible for reviewing suspicious listings was understaffed. According to a Commission spokesperson, employees often had just 10 to 20 seconds to assess each complaint.

Separate complaints target the platform's recommendation algorithms and advertising system: tests showed that illegal goods were being pushed into recommendations and ads before they could be taken down.

Another weak spot identified was seller vetting — sanctions against merchants who repeatedly offered banned goods were applied inconsistently, allowing some shops to keep operating on the platform even after previous penalties. In addition, some sellers deliberately listed products under the wrong categories to dodge stricter checks.

The Commission paid particular attention to counterfeits: despite an explicit ban in the platform's terms of use, fakes were spreading widely on AliExpress, while the trademark-verification system was ineffective due to a lack of staff.

Cheap flights from Prague
One search across every airline and travel agency.
Find tickets
Sponsored

Henna Virkkunen, the European Commission's Executive Vice-President for Tech Sovereignty, Security and Democracy, said e-commerce remains one of the top priorities in enforcing the DSA. She noted that today one in five EU residents regularly shops on Chinese marketplaces.

"If such companies sell illegal goods online, it means millions of our citizens across the EU end up buying them," Virkkunen said. She added that the platform's size is no excuse: "The spread of counterfeit clothing, dangerous toys, risky cosmetics and other illegal or harmful products is not an inevitable price of shopping online. Risks must be systematically identified and eliminated so that consumers can shop safely on the internet."

AliExpress must submit an action plan to the European Commission by October 20 at the latest, outlining how it will fix the violations identified. If the requirements aren't met, the company faces additional fines.

Despite its record size, the €550 million fine remains well below the maximum allowed under EU law. According to the Commission's estimate, the sum amounts to less than one percent of last year's revenue for Alibaba Group, AliExpress's parent company, even though DSA rules allow fines of up to six percent of a company's annual global turnover.

As a reminder, the Digital Services Act (DSA) and Digital Markets Act (DMA) came into force in 2023, aiming to ensure transparency, user safety and fair competition among the world's largest online platforms.

Source: novinky.cz

Share: Telegram WhatsApp

More U.S. news

Why Kimberly Guilfoyle Was Asked to Resign as Ambassador to Greece
Kimberly Guilfoyle is leaving her post as U.S. ambassador to Greece after the White House asked her to resign amid allegations of misconduct, according to NBC News and Fox News. She announced the move
Kroger's AI Push: The Numbers Behind 3,000 Planned Corporate Job Cuts
Kroger plans to lay off 3,000 corporate employees over the next three years as it expands its use of artificial intelligence, according to ABC News and Fox Business. CEO Greg Foran announced the move
Supreme Court Will Hear Fight Over Whether DOGE Must Follow Public Records Law
The Supreme Court on Tuesday agreed to hear a dispute over whether the Department of Government Efficiency, known as DOGE, is covered by the Freedom of Information Act. The case could determine whethe
Supreme Court Agrees to Decide Whether DOGE Must Answer Public Records Requests
The Supreme Court on Tuesday agreed to hear a Trump administration appeal in a dispute over whether the Department of Government Efficiency, known as DOGE, must turn over records under the Freedom of
Heckler Struck at Trump's Youngstown Rally as President Calls Her a Paid Protester
A woman wearing a shirt that read "Release the Epstein Files" was punched in the face by an apparent supporter of President Donald Trump during a rally Monday in Youngstown, Ohio, according to Fox New
NFL Teams Split on Columbus Day: Three Post Indigenous Peoples' Day, 29 Stay Silent
No NFL team and not the league itself mentioned Columbus Day on social media Monday, according to Fox News. Three teams, the Minnesota Vikings, Kansas City Chiefs and Los Angeles Rams, instead posted

Related news

Microsoft has moved the end of extended support for Windows 10 for home users: the ESU programme now runs until 12 October 2027 instead of 13 October 2026. For owners of older computers, that means one more year of security updates.Under th
Apple has unveiled a new line of smart home devices: cameras, a door lock, a video doorbell and thermostats. All the hardware connects through the iPhone and is controlled from the Home app or by voice via Siri. The Apple HomeView smart dis
Vast areas of Siberia hold the remains of microorganisms thousands and tens of thousands of years old in permafrost. As the Arctic warms rapidly due to climate change, more and more of this “infected soil” is thawing, the news agency Bloomb
Online grocery store Rohlík.cz has told customers about a major personal data leak: an outsider gained access to part of their communication with customer support. The company said so in an email it sent to shoppers.The leaked data includes
Spanish palaeontologists have found the first evidence that diplodocus lived in Europe as well. They have assigned a skeleton from the village of El Castellar near Teruel, about 100 kilometres northwest of Valencia, to the genus Diplodocus.
World Space Week is held every year from October 4 to 10. The world's largest celebration of space exploration, proclaimed by the UN, commemorates two important milestones: the launch of the first artificial satellite, Sputnik 1 (October 4,
Interest in the new iPhones has proved weaker than expected, and Apple is cutting their production. Nikkei Asia reports this, citing several well-informed sources.According to the publication, Apple has taken a more cautious approach to shi
Three former OpenAI safety researchers say the company fired them because they raised safety concerns. OpenAI says they were dismissed for mishandling sensitive information, and that the decisions had nothing to do with speaking out. Mikita
French startup Harmattan AI has unveiled IRIFI, an autonomous, expendable long-range strike drone. According to its creators, it can hit a target up to 2,000 kilometres away without using satellite navigation or help from an operator during
Software pioneer Margaret Hamilton died in late September at the age of 90, the Massachusetts Institute of Technology (MIT) announced on Thursday. In 1969, her program helped the Apollo 11 crew, led by Neil Armstrong, land on the Moon. Hami
At a presentation in San Francisco, Microsoft unveiled the Surface Laptop Ultra, the most powerful and most expensive laptop in the Surface family. The base version costs $2,599 (about CZK 56,600). When and at what price the device will arr
Artificial intelligence makes work easier, but it can also put a company in the firing line: according to Irena Hysková, head of the Czech cybersecurity firm Alintrust, employees often secretly use free public chatbots, such as ChatGPT, for