The European Commission has unveiled its latest attempt at regulating online shopping by fining Chinese retail giant AliExpress an eye-watering €550 million for allowing the sale of illegal products, including unsafe toys and counterfeit goods.

According to EU tech chief Henna Virkkunen, this hefty fine is not just about hitting a company where it hurts: it’s a wake-up call to tech giants everywhere that they must step up their game in ensuring consumer safety online. ‘The spread of harmful products isn't an inevitable cost of online shopping,’ she said, emphatically.

Despite AliExpress's claim that the fine is “disproportionate” and that it will appeal, the investigation revealed that its systems for detecting illegal goods were flawed, with many dangerous items going unaddressed. The company also failed to enforce penalties on traders who sold such products.

The Digital Services Act, which aims to hold tech giants accountable for harmful content, was cited as the basis for this unprecedented fine. While Alibaba's global revenue is significantly higher, experts believe that the penalty falls short of what could be possible under the act.

AliExpress has 193 million users in Europe and continues to face scrutiny alongside other Chinese retail platforms like Shein or Temu. This case may set a precedent for future online marketplaces, pushing them towards more stringent compliance measures.