India, July 20 -- The European Commission has fined Alibaba's AliExpress EUR 550 million (about $629 million) for failing to stop illegal, unsafe, and counterfeit products from being sold on its marketplace. It is the third penalty issued under the EU's Digital Services Act (DSA).

Regulators said AliExpress did not properly assess or reduce the risks posed by illegal listings, allowing items such as counterfeit goods, unsafe toys, and hazardous cosmetics to remain on the platform for weeks.

The Commission also criticized the company's product recommendation and advertising systems, citing weak seller penalties and shortcomings in its brand authorization process, which it said was understaffed and easy to bypass.

AliExpress has until Octo...