Alibaba hit with 550 million euro EU fine over illegal goods

2026-07-20

EU announces 550 million euro fine against Alibaba Group

Ruling over measures against illegal goods

The European Commission, the executive arm of the European Union, said on the 20th that it would fine Alibaba Group, China's largest online retailer, 550 million euros, or about 100 billion yen, for failing to tackle illegal products circulating on its platform.

AliExpress oversight lapses

The action is based on the Digital Services Act, or DSA, which requires online platforms to combat illegal content. It is the third DSA fine, following those imposed on US-based X, formerly Twitter, and Chinese online retailer Temu, and the amount is the largest so far.

The Commission said Alibaba's overseas shopping site AliExpress had not taken sufficient steps to curb the risk of illegal goods circulating on the platform. It said counterfeit goods, as well as toys with safety issues and hazardous cosmetics, were being widely sold.

There were cases in which listings remained up for weeks even after the products were identified as illegal goods, and cases in which problematic sellers were not properly penalized and were able to continue selling even after action was taken against them.

Corrective action demanded

The Commission said Alibaba had overestimated the capability of its own system for detecting and removing illegal products and also lacked sufficient supervisory staff. It called on the company to take prompt corrective action.

The DSA allows fines of up to 6% of global revenue. The Commission warned it would consider additional penalties if Alibaba's response proved inadequate.

European Commission Executive Vice President Henna Virkkunen said in a statement: 'Size is not an excuse. Companies need to identify risks and address them systematically so consumers can shop safely online.'

Enjoyed this article? Share it with your network!