The European Commission has fined the Chinese marketplace AliExpress €550 million for failing to conduct a proper assessment and take sufficient measures to mitigate the risks associated with the sale of illegal, unsafe, and counterfeit products on its online trading platform, Euronews reports.

The decision came just a few days after the EU introduced a flat €3 duty on parcels worth less than €150, which had previously entered the Union duty-free — a move expected to seriously affect the business models of Chinese online retailers AliExpress, Shein, and Temu.

The Commission’s investigation found that large volumes of illegal goods, including unsafe toys and hazardous cosmetics, continued to be sold freely on AliExpress despite moderators’ efforts, and in some cases such listings remained online for weeks after being flagged as violating the rules.