Temu hit with €200 million EU fine over illegal product sales crackdown

Chinese e-commerce giant Temu has been fined €200 million ($232 million) by European Union regulators for failing to do enough to prevent the sale of illegal products on its platform, in one of the bloc’s most significant enforcement actions under its digital rules.

The penalty was announced by the European Commission on Thursday following a nearly two-year investigation carried out under the Digital Services Act (DSA), which requires major online platforms to take stronger measures against illegal and harmful content.

Regulators said the company failed to properly identify, assess, and mitigate systemic risks linked to illegal product listings, and also did not adequately evaluate how its recommendation systems and influencer-driven promotions could amplify the spread of such listings.

The Commission said the findings highlight weaknesses in the e-commerce platform’s governance and risk assessment processes, adding that the company’s systems did not sufficiently protect consumers within the European Union.

Temu has rejected the decision, saying it disagrees with the fine and considers it disproportionate. The company added that the ruling relates to its earlier compliance assessments and does not reflect current improvements made to its systems.

Regulatory scrutiny for Temu under the Digital Services Act

The EU has given the company until August 28 to submit an action plan outlining how it will address the issues raised, which regulators will then assess over the following months.

Officials warned that further penalties could follow depending on Temu’s compliance, as the investigation also continues into broader concerns such as platform design, algorithmic recommendation systems, and data access for researchers.

EU tech regulators emphasized that the case is part of a wider push to enforce accountability on large online platforms, with fines under the DSA capable of reaching up to 6% of global annual turnover.

The Temu case marks the second major enforcement action under the legislation, following a previous penalty imposed on Elon Musk’s social media platform X.

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