A €200 million fine: why the European Union penalized Temu
29 May 02:46
The European Union has fined the Chinese e-commerce platform Temu €200 million for selling dangerous products. These include, in particular, children’s toys and chargers, which, according to the European regulator, could pose a risk to consumers.
Bloomberg reports this, according to "Komersant Ukrainian"
The European Commission stated that Temu failed to adequately prevent the sale of dangerous products on its platform. During the investigation, the regulator conducted so-called “mystery shopping” of goods and identified safety violations.
Why the EU fined Temu
The Chinese marketplace Temu was fined because products dangerous to consumers continued to be sold on the platform.
According to the European Commission, inspections frequently uncovered products that did not meet basic safety standards. The regulator paid particular attention to children’s toys and chargers.
The EU stated that a significant portion of the tested toys contained elevated levels of chemicals. Additionally, some products had small detachable parts that could pose a choking hazard to children.
Many chargers also failed basic safety tests.
Temu’s algorithms also came under fire
Separately, the European Commission accused Temu’s recommendation algorithms of promoting illegal goods.
The issue is that the platform not only allowed dangerous products to appear but also promoted such goods through its own recommendation mechanisms. That is why the regulator’s complaints concern not only sellers but also the platform’s management system itself.
This is particularly important for large online marketplaces, as algorithms influence which products users see, what appears in recommendations, and which products gain visibility more quickly.
The fine was imposed under the Digital Services Act
Temu was fined under the Digital Services Act (DSA).
This law requires large online platforms with over 45 million users in the EU to assess and minimize the risks arising on their services.
Such risks include the sale of illegal or dangerous goods, the spread of harmful content, insufficient user protection, and opaque algorithm operations.
Companies may face fines of up to 6% of their annual global revenue for violating the DSA.
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Temu’s Response
Temu disagreed with the European Commission’s decision and called the fine disproportionate.
“We disagree with the European Commission’s decision and consider the fine disproportionate,” the company stated.
Temu also emphasized that the EU’s findings pertain to the first DSA assessment in 2024 and, in the company’s view, do not reflect the current state of its systems.
The platform claims that it has since taken additional steps to strengthen risk assessment, marketplace management, and user protection.
Temu has two months to submit a plan to address the violations
The European Commission stated that Temu has two months to propose a plan to address the violations.
This plan must be approved by the regulator before implementation. If the company fails to comply with EU requirements, it could face additional periodic fines.
At the same time, Temu has the right to challenge the European Commission’s decision in court.
Temu is the second company penalized under the DSA
Temu is only the second company to be penalized under the Digital Services Act.
Prior to this, in December 2025, the EU fined Elon Musk’s X platform €120 million.
This indicates that the European regulator has begun actively applying the new rules to large digital platforms. This applies not only to social media platforms but also to marketplaces that sell goods to millions of users.
The EU has already taken action against Temu
In July 2025, the European Commission had already accused Temu of selling illegal goods. At that time, the issue was a violation of the Digital Services Act.
The new fine is a continuation of regulatory pressure on the platform. The EU is demanding that Temu not only remove dangerous goods once they are identified but also build a system to prevent their appearance and promotion.
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