The European Union has escalated its investigation into AliExpress, a global e-commerce platform owned by Alibaba Group, under the Digital Services Act (DSA). The EU Commission initiated the review in March 2024 and released its preliminary findings on June 18, 2025, revealing that the Chinese e-commerce platform failed to conduct sufficient product verification and did not adequately enforce its policies for penalizing repeat offenders who sell illicit content. According to the DSA, AliExpress may face a maximum fine of up to 6% of its global annual sales revenue. In response, AliExpress has stated that it will continue to cooperate with the EU investigation and is confident in its compliance with European regulations. This investigation comes at a critical time for Alibaba Group, which has been experiencing core business losses due to prolonged trade tensions between China and the US, and is seeking growth opportunities in Asia and Europe.