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Ulviyya Poladova

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The European Commission has imposed a €200 million fine on Chinese e-commerce platform Temu for failing to properly evaluate and address risks linked to the sale of potentially dangerous products under the EU’s Digital Services Act (DSA), AzerNEWS reports, citing Euractiv.

Announcing the penalty on Thursday, the Commission stated that consumers in the European Union faced a significant likelihood of encountering unlawful or unsafe goods on Temu’s marketplace. According to the regulator, the company did not take sufficient measures to reduce the risks associated with such products.

The Commission said that the risk assessments submitted by Temu, which are mandatory for large online platforms under the DSA, did not meet the standards required by EU digital regulations. Officials noted that the assessments relied mainly on broad descriptions of risks in the e-commerce industry rather than providing detailed analysis specific to Temu’s platform.

According to the findings of the investigation, many of the tested chargers failed basic safety inspections during control purchases carried out by regulators. In addition, a number of children’s toys were found to contain chemical substances exceeding permitted safety limits or posed choking hazards due to detachable parts.

The Commission also criticized Temu for failing to evaluate the impact of its recommendation algorithms and influencer-based promotional programs on the spread of prohibited products.

Temu has until August 28, 2026, to submit a detailed action plan aimed at addressing the violations. The European Commission warned that the company could face additional periodic fines if it fails to comply with the regulator’s demands.

EU Tech Commissioner Henna Virkkunen stated that additional investigations into Temu are still ongoing. These probes involve concerns related to potentially addictive platform design features, recommendation algorithms, user data access, and broader issues connected to illegal products sold online.

Virkkunen emphasized that risk assessments are a central requirement of the Digital Services Act and that online marketplaces must implement effective systems to prevent the distribution of illegal or unsafe products.

In response, Temu said it disagreed with the Commission’s ruling and described the financial penalty as disproportionate. The company argued that the decision was based on its initial 2024 DSA assessment and did not accurately reflect the current state of its compliance systems.

Under the Digital Services Act, the European Commission has the authority to impose fines of up to 6% of a company’s global annual turnover for serious violations. Additional penalties could also follow if Temu fails to comply with the Commission’s latest decision.

Image: Dado Ruvic / Reuters