THE HAGUE, Netherlands - The European Commission fined Chinese online marketplace AliExpress 550 million euros ($629 million) on Monday for not doing enough to stop unsafe and counterfeit goods from being sold on its platform.

The penalty marks the biggest ever handed out under the European Union's Digital Services Act. It follows a 200 million euro fine issued months earlier to rival retailer Temu for comparable violations and a $120 million penalty against X last year.

Commission executive vice-president Henna Virkkunen stated that the circulation of fake clothing, hazardous toys, risky cosmetics and other illegal items cannot be viewed as an inevitable part of online shopping. She described it instead as a clear breach of AliExpress obligations under the Digital Services Act.

Virkkunen noted that company size offers no justification and that risks must be spotted and handled in a systematic way so consumers can shop safely. She said the commission is now requiring AliExpress to meet that standard and take corrective steps.

In an emailed statement to The Associated Press, AliExpress said it remains committed to fulfilling its duties under the DSA and has devoted major resources to risk evaluation, product safety and buyer protection. The company called the fine disproportionate and said it does not reflect its existing systems or recent improvements, adding that it is reviewing the ruling and all possible responses.

The sanction covers company conduct through at least June 2025, when regulators issued a preliminary finding that AliExpress was not sufficiently addressing illegal products and accepted pledges for system upgrades.

AliExpress must now deliver an action plan by October 20 outlining steps to fix shortcomings in assessing and reducing systemic risks.

The Digital Services Act aims to protect online users and curb harmful content that is either illegal or breaches platform rules, while also safeguarding privacy and free expression rights.

The announcement arrives less than three weeks after Alibaba, AliExpress parent company, agreed to pay $600 million to settle U.S. allegations involving the sale and import of illegal pharmaceuticals and related equipment.