Brussels fines AliExpress $630 million over counterfeit failures

The European Commission has fined AliExpress $630 million for failing to curb counterfeit goods on its marketplace, the largest penalty issued under the Digital Services Act since the legislation took effect in 2023. The action, reported by WWD, marks a significant escalation in Brussels' willingness to use the DSA against major online marketplaces rather than just social platforms.

For luxury brands, the fine is a notable marker in a long-running fight against counterfeiting on cross-border e-commerce platforms. AliExpress and its parent Alibaba have faced years of criticism from fashion and accessories houses over the volume of fake goods listed on the site, and industry bodies have repeatedly pushed regulators to hold marketplaces directly accountable rather than treating counterfeiting purely as a seller-side problem. A fine of this size signals that the Commission now sees platform-level enforcement as central to that fight.

The broader implication is regulatory rather than purely commercial. The DSA gives Brussels powers to compel structural changes to how platforms vet sellers and listings, not just to levy fines, and further orders could follow if AliExpress does not demonstrate improved controls. Luxury groups with strong brand protection functions, from LVMH to Kering, will be watching closely for signs that this pushes other marketplaces, including Temu and Shein, to tighten verification processes ahead of possible scrutiny of their own.

What to watch: whether AliExpress appeals, what remediation measures the Commission demands, and whether similar investigations open against other Chinese-owned marketplaces operating in the EU.

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