EU imposes record fine on AliExpress under Digital Services Act

A Chinese online retailer, Temu, has become the latest major marketplace to be penalised under the European Union’s Digital Services Act (DSA), the European Commission announced on Thursday. The decision follows a series of formal warnings that the platform failed to meet the DSA’s obligations on illegal content removal, transparent advertising, and seller verification, prompting the Commission to impose a fine of €90 million.

The penalty reflects the EU’s broader effort to enforce the DSA, which came into force in 2022 and requires large online platforms to swiftly address harmful or counterfeit goods, provide clear terms of service, and cooperate with national authorities. Temu was given a six‑month deadline to implement a comprehensive compliance programme after earlier notices highlighted persistent listings of counterfeit fashion items and inadequate mechanisms for users to report illegal content. The fine, one of the steepest levied under the new rules, underscores the Commission’s willingness to sanction non‑European firms that operate in the single market without adhering to the regulatory framework.

Temu has said it will appeal the sanction while accelerating its remediation measures to avoid further action. The case serves as a warning to other overseas e‑commerce operators that the EU will enforce the DSA uniformly, regardless of a company’s country of origin, and signals a tightening regulatory environment for digital marketplaces across Europe.