EU fines AliExpress 550 mln euros under Digital Services Act
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The European Commission fined Alibaba's AliExpress 550 million euros ($627 million) for violating the EU's Digital Services Act. China's Ministry of Commerce expressed strong opposition, calling the fine discriminatory and warning against digital barriers targeting Chinese companies.
The Fine
The European Commission imposed a 550 million euro fine on AliExpress, the cross-border e-commerce platform owned by Alibaba Group, for breaching the Digital Services Act (DSA). The penalty, equivalent to $627 million, targets the platform's handling of illegal content and consumer protection failures. The DSA, effective since February 2024, requires large platforms to assess and mitigate systemic risks.
China's Response
China's Ministry of Commerce voiced strong dissatisfaction, accusing the EU of using digital regulation as a pretext to erect trade barriers. A ministry spokesperson stated that China firmly opposes discriminatory measures that restrict normal operations of Chinese e-commerce firms in Europe. Beijing urged Brussels to avoid overstepping its authority and to ensure fair treatment of Chinese companies.
Legal and Trade Implications
The fine marks one of the largest DSA penalties to date, signaling the EU's aggressive enforcement against major platforms. China warned it would take necessary steps to protect its companies' legal rights. The dispute adds to growing trade tensions between Beijing and Brussels, already strained over electric vehicle tariffs and data sovereignty issues.
What's Next
AliExpress is expected to appeal the fine within the EU's legal framework. It remains unclear whether the EU will impose additional compliance measures or if China will retaliate with trade restrictions against European digital firms.
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EU fines AliExpress 550 mln euros under Digital Services Act
