Multi-million fine under the Digital Services Act (DSA)
Due to inadequate efforts to combat illegal, unsafe, and counterfeit products on its e-commerce platform, the European Commission has imposed a fine of 550 million euros on the well-known Chinese online marketplace AliExpress. The decision was made on 20 July 2026, in accordance with the provisions of the Digital Services Act (DSA), a comprehensive legislative package of the European Union, which also addresses online trade in counterfeit goods and primarily focuses on large online platforms.
The European Commission’s decision follows an inquiry initiated back in 2024 regarding alleged violations of the DSA. According to the inquiry, AliExpress had, among other things, failed to establish an effective system for detecting and removing illegal listings. Furthermore, the platform’s compliance checks were seen as vulnerable to abuse: sellers would be able to deliberately misclassify products to circumvent stricter requirements. Particularly relevant to brand protection is the finding that the trademark authorization system, designed to prevent the sale of counterfeits, would be inadequate; sellers were able to circumvent the protective mechanisms and continue to list counterfeits. Furthermore, AliExpress reportedly did not enforce sanctions consistently, allowing penalized shops to remain active.
AliExpress rejects accusations
AliExpress stated that it had invested significant resources in risk assessment and consumer protection. The company said it disagreed with the penalty, which it considered disproportionate, and that it was reviewing the decision. According to the European Commission’s decision, AliExpress now has until 20 October 2026 to submit an action plan; the Commission will then decide within two months on any further measures.
This is not the first time the Chinese platform has drawn criticism. In 2022, for example, AliExpress was added to the U.S. Notorious Markets List, and in 2023, the Alibaba Group announced stronger measures against counterfeits.
Focus on combating illegal online trade
The penalty imposed on AliExpress comes amid ongoing discussions about the online sale of illegal products, particularly on Chinese platforms such as AliExpress, Shein, and Temu. Not long before, the EU had already introduced a flat fee of 3 euros on previously duty-free packages valued at less than 150 euros; a move that could impact the business models of online marketplaces and retailers shipping from outside Europe.
In Germany, the German Brand Association (Markenverband) views the penalty as a positive sign. At the same time, the trade association is calling for further action. “Anyone who facilitates the sale of counterfeit products and profits from it must be held accountable,” explained CEO Patrick Kammerer. Among other things, the association is calling for platforms to be held liable when no responsible business operator in the EU can be identified, as well as for a tightening of the DSA: Once counterfeits were identified, they should not be allowed to reappear but should be removed permanently.
