ALIEXPRESS FACES RECORD $625M EU FINE FOR DSA VIOLATIONS

AliExpress received the record-breaking fine for non-compliance with the Digital Services Act (DSA), which requires online marketplaces to combat illegal goods and protect consumers. The retailer had previously been ordered to address specific violations but did not implement the necessary changes within the given timeframe. EU regulators found persistent failures in removing counterfeit products, preventing underage purchases, and providing adequate seller verification. AliExpress stated it was surprised by the penalty, suggesting disagreement with the enforcement action. The $625M fine exceeds previous DSA penalties, signaling the EU's willingness to impose substantial sanctions for non-compliance. Other platforms have faced similar orders to modify their operations under the bloc's strict digital commerce rules. The penalty reflects ongoing tension between Chinese e-commerce companies and European regulators over consumer safety standards and illegal product sales.