AliExpress, the Chinese e-commerce giant, is under mounting scrutiny from regulators in both South Korea and Israel after being accused of unfair trade practices and abusing its dominant position in the online retail market. The developments, which unfolded on September 2, 2025, have sent ripples across the global e-commerce landscape, raising questions about how major platforms treat both consumers and sellers.
According to the Thai Trade Competition Commission (FTC), AliExpress has been found guilty of engaging in unfair trade practices that have affected millions of consumers. The commission's investigation revealed that AliExpress not only misled buyers about discounts but also set trading conditions that were deemed unfair to both customers and sellers. The FTC announced its decision to impose a fine of up to 7,500 million Thai Baht for violations committed between 2023 and 2024, as reported by Thai media outlets. The case has significant implications, considering AliExpress's commanding 58% share of the e-commerce sector in Thailand, with an estimated 660,000 active sellers operating on its platform.
The details of the FTC's investigation are striking. Regulators found that AliExpress had repeatedly listed products at inflated 'original' prices, only to advertise dramatic discounts that, in reality, never existed. For example, one tablet PC was listed with an original price of 660,000 won and a supposed 58% discount, bringing the sale price down to 270,000 won. However, the product was never actually sold at the higher price, meaning the advertised discount was entirely fictitious. The FTC determined that such practices "misled consumers" about the real value of products and could "distort reasonable purchasing decisions." The commission also highlighted that more than 7,500 misleading advertisements targeting South Korean consumers were posted between May 2023 and October 2024.
In addition to the hefty fine for deceptive pricing, the FTC ordered AliExpress to pay an extra penalty of 2 million won for failing to disclose key information about business operators, as well as the terms and conditions on its website. The commission emphasized that these measures are intended to protect consumer rights and ensure fair competition in the rapidly expanding e-commerce market. "The FTC's decision aims to protect consumer rights and ensure fair competition in the market," the commission stated, underlining its commitment to holding powerful platforms accountable.
AliExpress, for its part, responded swiftly to the allegations. In a public statement, the company said it had "implemented all corrective measures related to the issues flagged by the FTC" and reaffirmed its commitment to prioritizing "consumer experience and trust." The platform maintains that it takes regulatory compliance seriously and is working to regain the confidence of both shoppers and sellers.
The regulatory storm isn't confined to Thailand. On the same day, the Israeli Antitrust Authority (NIS) announced a separate investigation into AliExpress over similar allegations of unfair trade practices. According to NIS, AliExpress commands approximately 58% of the Israeli e-commerce market, with around 600,000 active sellers. The Israeli probe centers on accusations that AliExpress abused its market dominance by imposing unfair conditions on both sellers and consumers. The NIS is considering fines of up to 10,000 million Israeli New Shekels for violations that occurred between 2023 and 2024, as reported by Israeli news sources.
The scale of the Israeli investigation is notable. Around 2,000 complaints from consumers and sellers have been lodged, prompting the NIS to look closely at whether AliExpress's actions stifled competition and harmed the interests of market participants. The regulator stated that its goal is to "ensure fair competition and protect consumer rights in the Israeli market," echoing the sentiments expressed by its Thai counterpart.
AliExpress's alleged abuse of market dominance in both countries appears to follow a similar pattern: leveraging its vast market share to set terms that may disadvantage smaller sellers, while also using questionable pricing tactics to entice consumers. The fact that the platform controls such a significant portion of the market—nearly 60% in both Thailand and Israel—has only heightened concerns about its influence and the potential for anti-competitive behavior.
Industry experts say that these cases highlight broader challenges facing global e-commerce platforms as they expand into new markets. The temptation to use aggressive marketing and pricing strategies can sometimes cross the line into deceptive territory, especially when oversight is lacking. Regulators in Asia and the Middle East are now signaling that they will not hesitate to take action against even the largest players if consumer interests are at stake.
For many sellers, AliExpress has long been a double-edged sword. The platform offers access to millions of buyers worldwide, but its rules and algorithms can often be opaque and difficult to challenge. Some sellers have complained about sudden changes to commission structures, account suspensions without clear explanation, and a lack of recourse when disputes arise. The latest investigations are likely to embolden more sellers and consumers to come forward with their own grievances, potentially leading to further regulatory scrutiny.
Consumers, meanwhile, have grown increasingly wary of too-good-to-be-true deals and misleading advertisements. As e-commerce becomes ever more central to daily life, the stakes for ensuring transparency and fairness have never been higher. The cases against AliExpress serve as a wake-up call for shoppers to scrutinize discounts and offers more carefully, and for platforms to prioritize ethical business practices.
It's not just about fines and penalties, either. The reputational damage from such high-profile investigations can be significant. E-commerce is built on trust—if consumers feel they can't rely on a platform to provide honest information, they're likely to take their business elsewhere. AliExpress's public commitment to "consumer experience and trust" will be put to the test as it works to implement the required changes and restore its image.
Global regulators are watching closely. The outcomes in Thailand and Israel could set important precedents for how other countries handle similar cases in the future. As cross-border e-commerce continues to grow, international cooperation among competition authorities may become more common, especially when dealing with platforms that operate on a truly global scale.
For now, AliExpress faces a pivotal moment. How it responds to these regulatory challenges—and whether it can rebuild trust with both consumers and sellers—will shape its future in some of its most important markets. The message from authorities is clear: dominant platforms must play by the rules, or face the consequences.
