Facing a record €550 million ($629 million) fine imposed by the European Commission, Alibaba-owned cross-border e-commerce platform AliExpress said on Monday that it disagrees with the decision and is reviewing its options after the regulator accused it of failing to adequately address the sale of illegal, unsafe, and counterfeit products.

"We disagree with the decision and the disproportionate fine," AliExpress said, adding that the penalty did not fully reflect its established compliance framework or the significant improvements it had proactively introduced.

The company said it is carefully reviewing the decision and considering all available options.

The move is in response to the Commission's earlier financial penalty, saying that AliExpress had breached its obligations under the Digital Services Act by failing to properly assess the risks linked to illegal, unsafe, and counterfeit products on its platform and take effective measures to reduce their spread.

The penalty is the largest imposed since the DSA took full effect and marks the European Commission's third known fine under the law. The regulator previously fined social media platform X €120 million and Chinese cross-border e-commerce platform Temu €200 million.

AliExpress has been ordered to submit a corrective action plan by Oct 20. The Commission will assess the proposed measures after receiving the plan, while continued non-compliance could expose the platform to further penalties.