The €200 million fine is the largest ever imposed under the EU's Digital Services Act, exceeding the previous €120 million penalty against social network X.
EU mystery shopping and lab tests found a very high percentage of chargers failed safety tests and a high percentage of baby toys posed chemical or choking hazards.
The Commission ruled Temu's mandatory risk evaluation was too generic, lacked solid evidence, and failed to capture the real scale of potential harm to consumers.
The Chinese platform called the penalty disproportionate, arguing it reflects outdated 2024 assessments and not its current improved systems.
Temu has until August 28, 2026, to submit a corrective action plan, with the threat of additional recurring fines for non-compliance.
The EU probe continues into the actual sale of illegal goods and the potentially addictive design of the platform.
The European Union has levied a landmark €200 million fine against the Chinese online marketplace Temu for violating the Digital Services Act (DSA). The penalty, announced on Thursday, marks the most significant enforcement action under the bloc's flagship tech regulation, surpassing the €120 million fine imposed on Elon Musk's social network X last year.
The European Commission concluded that Temu failed to properly identify, analyze, and assess the systemic risks posed by illegal products on its platform. Henna Virkkunen, the EU Commission Vice-President for Tech Sovereignty, stated that Temu's risk assessment underestimated concrete dangers, was too unspecific, and did not rely on solid evidence. The Commission found the company's mandatory annual risk report to be inadequate, relying on general industry data rather than the specific conditions on its own platform.
“Temu's risk assessment underestimates concrete risks, is too unspecific, does not rely on solid evidence, and is not comprehensive.”
To build its case, Brussels commissioned an independent contractor to conduct incognito purchases, followed by laboratory tests on randomly selected items. The findings were stark. A very high percentage of selected chargers failed basic safety tests, posing risks of overheating, fire, or electrocution. A high percentage of tested baby toys presented medium to high safety risks, either containing chemical substances exceeding legal limits or featuring detachable parts that created choking hazards. Jewelry containing unauthorized chemical substances was also flagged. These results were corroborated by customs controls from member states and the European market surveillance database.
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Temu, which boasts between 92 and 130 million users in the EU depending on the source, called the fine "disproportionate" and argued that the decision reflects its 2024 risk assessment and not the current state of its systems. The company stated it respects the need for clear rules but is carefully studying the decision and keeping all options open. Beyond the fine, Temu must submit a corrective action plan by August 28, 2026. Failure to comply could result in additional daily, weekly, or monthly penalties.
“We disagree with the European Commission's decision and believe the fine is disproportionate. The decision refers to 2024 and does not reflect the current state.”
The €200 million penalty, which represents less than 1% of parent company PDD Holdings' annual revenue of €53 billion, is only the first chapter of the EU's probe. The Commission is still investigating the actual sale of illegal products, as well as the potentially "addictive design" of the platform aimed at capturing consumers. Czech trade association president Tomáš Prouza welcomed the fine but insisted that national authorities, such as the Czech Trade Inspection, must now also take action to enforce the rules.
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The European Commission has imposed a €200 million penalty on Chinese e-commerce platform Temu, the largest fine ever under the Digital Services Act, after investigators found a systemic failure to prevent the sale of hazardous items like toxic baby toys and unsafe chargers.
AI text based on reports by RP Online, RFI, Deutsche Welle and other publishers. Published .