EU fines AliExpress in largest-ever Digital Services Act penalty

The European Commission has issued preliminary findings against AliExpress, the e-commerce marketplace owned by Alibaba, for failing to prevent illegal, unsafe, and counterfeit products from circulating on its platform. The case falls under the EU’s Digital Services Act, the sweeping content moderation framework that came into force between 2022 and 2023.

What AliExpress actually did wrong

The European Commission’s preliminary findings, released on June 18, 2025, identified violations of Articles 34 and 35 of the DSA. Those articles require very large online platforms to actively assess and reduce the risks of illegal content and dangerous products on their services.

The formal investigation had been running since March 2024, giving Alibaba over a year to respond before findings were published. The probe focused on three specific failure areas: advertising transparency, how the platform handles user complaints, and seller traceability.

Potential fines under the DSA can reach up to 6% of a company’s global annual turnover.

Alibaba entered into binding commitments to improve its advertising transparency systems, upgrade its complaints-handling infrastructure, and strengthen seller verification processes.

Why the DSA matters beyond this case

The Digital Services Act requires platforms above a certain size, classified as Very Large Online Platforms, to face stricter obligations than smaller services. AliExpress was placed on the VLOP list, triggering the full weight of DSA compliance requirements.

The Commission has opened proceedings against multiple platforms including X (formerly Twitter) and Meta.

What this means for investors watching Alibaba

A penalty calibrated at up to 6% of global annual turnover is large enough to affect earnings guidance and analyst models. Compliance investments required to satisfy EU regulators carry their own costs, including rebuilding seller verification systems, improving complaint pipelines, and enhancing advertising transparency.

As of mid-2026, no definitive penalties have been assessed, although reports including a claimed €550 million fine have circulated on social media.

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