The European Commission has fined Temu €200 million (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 the Commission has imposed a penalty on an international company under the DSA. Temu has until August 28 to submit an action plan to ensure compliance or face additional periodic fines.
The Commission found that Teemu, a Chinese online marketplace famous for low-priced goods, did not properly assess the risks associated with illegal products sold through its platform. This probably also encouraged European customers to purchase illegal goods.
What the European Commission found on Temu’s platform
The investigation, which began in 2024 and is still ongoing, has led the Commission to state that enough evidence has been collected to issue a preliminary fine. Key findings include:
- Temu provided a general risk assessment that lacked specific analysis of its platform and did not adequately reflect its reporting or testing efforts.
- The company did not estimate how many times European customers were offered illegal goods.
- A mystery shopping investigation found that many products on Temu would fail basic safety tests, including children’s toys that contained unsafe levels of hazardous chemicals that could pose a risk to children.
- Teemu also failed to properly assess the design of its platform, which the Commission said effectively encouraged the sale of illegal goods through promotional programs advertised by affiliated influencers.
Under the Digital Services Act, very large online platforms are required to assess systemic risks to consumers and adopt appropriate mitigation measures when such risks are identified.
The Commission stated that the lack of proper risk assessment is a significant breach of the DSA.
How the €200 million Temu fine was calculated and what happens next
The fine of €200 million was set based on the seriousness of the breach, the number of EU users affected and how long the misconduct lasted. Under the DSA, companies can face fines of up to 6% of their global annual revenue. This existing fine leaves open the possibility of higher penalties if Temu fails to comply.
Temu has until August 28 to submit an action plan under Article 75 of the DSA to bring the platform into compliance. Without proper planning or meaningful corrective measures, the company may face additional penalties on a regular basis.
In a statement to Reuters, Temu said it was ready 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 fine issued by the European Commission, following the 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 enforcement actions under the DSA are part of a broader European regulatory effort targeting large platforms, which includes an ongoing investigation of TikTok and Meta over concerns related to addictive algorithms and child safety issues.
The TEMU investigation is still open, meaning additional findings or penalties could be issued even after the August 28 deadline for existing fines and compliance.
