1 month ago
EU fines AliExpress $629 million for illegal product sales
The European Union has fined AliExpress, a popular online shopping platform, $629 million for not doing enough to stop the sale of illegal, unsafe, and fake products.
The EU says AliExpress didn't have enough people to check for these bad products and didn't remove them quickly enough.
AliExpress disagrees and says it has been working hard to fix these issues.
The fine is the biggest so far under a new EU law called the Digital Services Act, which aims to make online platforms safer.
Other companies like X (owned by Elon Musk) and Temu have also been fined for similar reasons.
AliExpress has until October to propose fixes and could face more penalties if they don't comply.
The EU fined AliExpress $629 million for failing to tackle illegal, unsafe, and counterfeit products on its platform.
The fine is the largest under the EU's Digital Services Act (DSA), which requires large online platforms to combat illegal content.
AliExpress plans to appeal the fine, stating it has made significant improvements and considers the fine excessive.
The EU criticized AliExpress's risk management, recommender systems, and penalty policies for being ineffective.
Previous fines under the DSA include $135 million for X and $225 million for Temu.
- Who
- AliExpress, European Union
- What
- EU fines AliExpress $629 million for illegal product sales
- Where
- Brussels, Belgium
- When
- June 2024
- Why
- AliExpress failed to comply with the Digital Services Act (DSA) requirements to tackle illegal, unsafe, and counterfeit products.
EU Regulators
AliExpress
Fine Imposition
EU Regulators
The EU imposed a record fine on AliExpress for failing to tackle illegal, unsafe, and counterfeit products on its platform.
AliExpress
AliExpress considers the fine excessive and plans to appeal, citing its risk management framework and proactive enhancements.
Compliance with DSA
EU Regulators
The EU claims AliExpress did not properly evaluate its risk management and relied on ineffective systems to detect and remove illegal products.
AliExpress
AliExpress asserts it has worked with the Commission to meet evolving expectations and has made significant improvements.
Key facts
- Fine Amount
- $629 million
- Date of Fine
- June 2024
- Deadline for Remedial Measures
- October 2024
- EU Tech Chief
- Henna Virkkunen
- AliExpress Users in Europe
- 193 million
- Previous Fines Under DSA
- X: $135 million, Temu: $225 million
Quotes
AliExpress
Company spokesperson via email
“Today’s decision and disproportionate fine ignores our sound risk management framework and the significant, proactive enhancements we have made.”
theprint.in
Henna Virkkunen
EU tech chief
“This is very dangerous for consumers, unfair for companies which are complying with all our rules.”
theprint.in
Sources
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