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The European Commission has imposed a record fine of 550 million euros on AliExpress for failing to adequately address illegal, unsafe, and counterfeit products on its platform. The question is not only whether the Chinese e-commerce company will actually pay, but also what the EU will do with that money and how long the legal proceedings might drag on.
According to the Commission, AliExpress fell short in assessing and mitigating risks associated with illegal products, and certain listings remained online for weeks after they had already been flagged. This is the heaviest fine the EU has imposed to date under the Digital Services Act. The case is part of a stricter European approach to large online platforms, which Brussels says are not doing enough to combat the sale of prohibited or dangerous goods.
Will they pay?
AliExpress immediatelycalled the fine “disproportionate” and says it is reviewing the decision. In practice, companies often appeal, but the European Commission typically has strong cases, and courts often uphold them, possibly with a limited reduction in the amount. Multinationals can hardly afford to lose the large European market, so payment seems likely after all.
Where does the money go?
If the fine is actually collected, the money does not go into a separate fund but into the European budget. This means that member states will have to pay lower contributions in the next fiscal year, so every member state indirectly benefits from the revenue. The money is therefore not earmarked for a specific project, but reduces the member states’ overall contributions.
Broader Crackdown on Chinese Online Retailers
AliExpress must submit an action plan by October 20, 2026, outlining measures to rectify the issues. This will be followed by a recommendation from the European Board for Digital Services, after which the Commission will make a final decision. If the company fails to comply, Brussels can impose additional penalty payments of up to 5 percent of its daily global revenue. The fine is not an isolated measure but is part of broader European pressure on Chinese online retailers such as Temu and Shein. Brussels is also applying additional pressure on low-cost packages from China through customs measures.
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