August M
Online bargains are easier than ever to grab with a single tap on a smartphone screen.
According to DR News, European regulators are cracking down on foreign online marketplaces that sell unsafe items to millions of everyday digital shoppers.
Price of unsafe goods
Chinese e-commerce giant AliExpress must pay a record 550 million euros after European regulators issued their largest penalty yet under new digital safety laws.
Reporting from Brussels, DR News revealed that the European Commission penalized the massive shopping platform for failing to conduct proper quality checks on items listed across its digital marketplace.
Regulators uncovered dangerous children’s toys alongside makeup containing toxic, illegal chemicals. Even after safety teams flagged the dangerous products, several items remained available for purchase on the site.
Officials noted that the platform failed to employ enough quality control staff to police its vast online inventory. As a result, millions of non-compliant items reached unsuspecting European households.
Fighting the penalty
The platform also faced sharp criticism for actively running advertisements for illegal goods on its network. AliExpress stands as the largest Chinese shopping platform operating in Europe, serving an estimated 193 million customers alongside popular rivals Shein and Temu.
Despite the size of the penalty, the company strongly pushed back against the European Commission ruling. In an email statement to Reuters, AliExpress wrote, “We disagree with today’s decision and the disproportionately high fine, which does not adequately reflect our existing framework and the significant, proactive improvements we have made.”
The company added that it is reading the decision carefully while considering all available options. Regulators have ordered the marketplace to submit a concrete action plan by October 20 showing how it intends to comply with safety rules in the future.
Tech giants targeted
This massive fine represents the third major enforcement action against foreign tech giants under the EU’s Digital Services Act.
Regulatory pressure has escalated dramatically across the continent in recent months. DR News reported that Elon Musk’s social network X previously faced a 120 million euro penalty, while rival shopping app Temu received a 200 million euro fine.
European officials hope these multibillion-kroner fines send a clear warning to global tech firms that consumer safety laws cannot be ignored.
Sources: DR News, Reuters, European Commission
