EU fines Temu 200 million for selling illegal products under Digital Services Act
The European Union fines Chinese e-commerce giant Temu €200 million for systematically allowing the sale of illegal and dangerous products on its platform, marking the largest penalty under the bloc’s Digital Services Act (DSA) to date. The European Commission confirms the fine, imposed on Thursday, follows a 2024 investigation that found Temu failed to properly assess risks tied to high-risk items—including flammable chargers, toys posing choking hazards, and unsafe baby products—exposing consumers to "serious harm," according to officials .
The penalty stems from Temu’s non-compliance with the DSA, a 2024 regulation designed to hold digital platforms accountable for content and product safety. Brussels’ investigation revealed the company did not implement adequate risk-mitigation measures, despite repeated warnings. "This is a particularly serious violation," the Commission stated, emphasizing the scale of the breach .
Temu, owned by China’s PDD Holdings, now faces a fine equivalent to $232 million, the highest levied since the DSA’s enforcement. The Commission’s findings highlight specific product categories—such as faulty electronics and children’s toys—that failed EU safety standards, with some items flagged for posing "immediate risks" to users . The company has not yet publicly responded to the ruling.
The decision underscores the EU’s aggressive enforcement of the DSA, which targets platforms with over 45 million monthly users. While the fine sends a signal to other e-commerce players, industry observers note it may do little to level the playing field for European retailers, who argue Temu’s low-cost model undercuts local competitors . The Commission has not ruled out further action if Temu fails to address the violations.



