The European Commission fined Chinese e-commerce giant Temu €200 million for failing to assess the risks associated with the sale of illegal and other high-risk products on its platform under the EU’s Digital Services Act (DSA).
In issuing the fine on Thursday, the Commission said that European consumers were too likely to encounter illegal products in Temu and that the company failed to mitigate the risks posed by their circulation.
It said the risk assessments submitted by Temu – an obligation for all online platforms defined under the DSA – did not meet the standards set out in the bloc’s online digital regulation.
Temu, one of the few online platforms offering hyper-discounted goods typically shipped from China, saw the Commission open an investigation in October 2024 over concerns about the sale of illegal products. Last July, that found in advance that Temu breached the DSA because it failed to adequately assess the risks in its market.
The commission confirmed its findings on Thursday and said the e-commerce giants’ risk assessments for 2024 lacked specificity, focusing on “general information” about risks in the e-commerce sector as a whole rather than specific evidence related to Temu.
According to the Commission’s mystery shopping exercise, part of the investigation, it found a number of unsafe products on the platform, including faulty electronics and children’s toys with chemicals that exceed safety limits and choking hazards.
Technology Commissioner Henna Virkkunen said the Commission is still investigating other DSA violations by Temu related to affiliate models, recommender systems and data access. A wider investigation into the sale of illegal products is also ongoing.
Risk assessments are the “cornerstone” of the DSA, and online shopping platforms must ensure they all have “systems in their online marketplace to combat illegal products,” Virkkunen added.
“Temu has clearly underestimated the risks of their services, and that is why we have taken … this decision of non-compliance,” she added.
Virkkunen pointed out that Temu was a “very big player” in the European market, growing by 30% last year to 130 million monthly EU users.
Temu has until August 28, 2026 to provide an “action plan” with measures to remedy the breach. The firm must conduct a proper risk assessment, warned Virkkunen.
Under the DSA, the Commission can fine companies up to 6% of their global turnover for violations. If Temu does not comply with Thursday’s decision, the Commission may also impose additional fines.
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