Alibaba Vows to Appeal $629M EU Fine Over AliExpress DSA Breaches
Alibaba called the European Commission's €550 million Digital Services Act penalty 'disproportionate' and will challenge it in court, escalating the EU's biggest enforcement clash with a Chinese platform.
Alibaba will appeal the €550 million (US$629 million) fine the European Commission levied on AliExpress this week, setting up the most significant legal test yet of the Digital Services Act's application to a Chinese platform.
The allegations
The Commission accused AliExpress of failing to adequately assess and mitigate systemic risks around illegal products — citing ineffective detection and removal of counterfeits, unsafe toys and dangerous cosmetics. Regulators said moderation teams were understaffed relative to workload, that the platform overestimated its detection systems' effectiveness, and that illegal listings persisted and were even recommended to consumers.
Alibaba's response
The company said the penalty was "disproportionate" and did not reflect the "significant, proactive enhancements" it has made, pointing to voluntary commitments and compliance improvements undertaken since the DSA came into force. It has committed to appeal.
Why it matters
The fine is the largest the EU has imposed under the DSA against a non-EU platform, and lands amid a broader regulatory squeeze on Chinese e-commerce in Europe — from customs reform targeting low-value parcels to parallel scrutiny of Temu and Shein. For Brussels, the case is a template; for Chinese platforms, the appeal's outcome will define the cost of serving the EU's 450 million consumers.
An appeal could take years to wind through the EU courts. In the meantime, AliExpress remains under DSA supervision — and every takedown metric it produces will now be litigated evidence.
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