The European Commission has fined Temu 200 million euros (about $232 million) for failing to prevent the sale of illegal products on its platform, a violation of the Digital Services Act (DSA).
This is the second time that the Commission has imposed a fine under the DSA on an international company. Temu has until August 28 to submit an action plan to ensure compliance or face additional periodic fines.
The Commission concluded that Temu, a Chinese online marketplace known for its low-cost products, did not adequately assess the risks related to illegal products sold through its platform. It probably also encouraged European customers to buy illegal products.
What the European Commission found about the Temu platform
The investigation, which began in 2024 and remains ongoing, has led the Commission to say that sufficient evidence has been collected to impose an initial fine. Key findings include:
- Temu provided a generic risk assessment that lacked specific analysis of its platform and did not adequately reflect its reporting or testing efforts.
- The company underestimated the frequency with which illegal products were offered to European customers.
- A mystery shopping investigation found that many products at Temu would fail basic safety tests, including baby toys that contain dangerous levels of dangerous chemicals that could pose risks to children.
- Temu also failed to conduct a proper assessment of its platform design, which the Commission found effectively encouraged the sale of illegal products through promotional programs advertised by affiliated influencers.
Under the Digital Services Act, large online platforms must assess systemic risks to consumers and take appropriate mitigation measures when such risks are identified.
The Commission stated that the lack of an adequate risk assessment constitutes a significant violation of the DSA.
How the 200 million euro fine for Temu was calculated and what happens next
The €200 million fine was set based on the severity of the infringement, the number of EU users affected and the duration of the misconduct. According to the DSA, companies can face penalties of up to 6% of their global annual revenue. This current fine leaves open the possibility of higher penalties if Temu does not comply.
Temu has until August 28 to submit an action plan under section 75 of the DSA to bring the platform into compliance. Without a proper plan or significant corrective measures, the company could face additional fines on a regular basis.
In a statement to Reuters, Temu said he was willing to cooperate with the European Commission. The company also argued that the 2024 assessment cited by Brussels no longer accurately reflects how the platform currently operates.
The Temu fine is the second DSA-related sanction issued by the European Commission, following a fine imposed on Elon Musk’s X platform in 2025. In that case, X allegedly did not include cooperation as part of its response.
The DSA’s enforcement actions are part of a broader European regulatory effort targeting large platforms, with ongoing investigations into TikTok and Meta over concerns related to addictive algorithms and child safety issues.
The investigation into Temu is still open, meaning additional findings or sanctions could be issued beyond the current fine and the August 28 compliance deadline.
