The European Union (EU) has imposed the biggest fine ever on China’s giant tech company Alibaba’s e-commerce website AliExpress. The European Commission has imposed a fine of 550 million euros (about more than Rs 5,500 crore) on the company. It is alleged that the company failed to stop the sale of fake, illegal and unsafe products being sold on its platform.
According to European Union officials, many products were being sold on AliExpress that did not comply with European safety and environmental standards. These also included toys, cosmetics and other consumer products. The investigation also revealed that many of the products which were removed as illegal started appearing again on the platform and in some cases they were even suggested to the customers.
Action taken under this law
This action has been taken under the Digital Services Act (DSA). This law was implemented by the European Union in 2022, so that accountability of big tech companies and online platforms can be fixed. The investigation into this case against AliExpress started in March 2024. According to the European Union, it is the responsibility of online shopping platforms to identify the risks present on their platforms and remove them in time, so that consumers can shop safely.
Highest fine ever
It is being claimed that this fine of 550 million euros is the biggest fine ever imposed on a shopping platform. Earlier, a fine of 120 million euros was imposed on social media platform However, AliExpress has opposed this action. The company says that the fine imposed is excessive and the union has ignored the reforms that the company has made in the recent past. The company also said that it is considering all legal options available against this decision.
Europe is the largest marketplace for AliExpress
Currently, AliExpress is the largest Chinese online marketplace in Europe and has about 193 million active users. In comparison, Shein has about 15.6 crore users and Temu has about 13 crore users. According to European officials, Europe is AliExpress’s largest market. The European Union has directed to deposit the fine by October 20. If the company does not do this, it may be fined further.
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