EU Slaps Temu With €200 Million Fine Over Unsafe and Illegal Products

The EU fined Temu €200 million for failing to prevent illegal and unsafe products from being sold on its platform under the Digital Services Act. Regulators found dangerous items, including faulty chargers and unsafe baby toys. Temu called the fine disproportionate and may appeal the decision.

The European Union has imposed a €200 million ($232 million) fine on Chinese-owned online retail platform Temu for violating the bloc’s Digital Services Act (DSA), a regulation that requires major digital platforms to evaluate and manage risks that could harm consumers.

The penalty, announced on Thursday, marks the second major sanction issued under the EU’s DSA rules relating to online content and consumer protection. It follows a €120 million fine handed to Elon Musk’s X platform in December for breaching the same digital regulations.
According to EU regulators, consumers using Temu are “very likely to encounter illegal items” on the platform. Authorities stated that the company significantly underestimated the frequency with which European users could come across unsafe or unlawful products.
In a statement, the European Union said Temu “failed to diligently identify, analyze, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” Regulators further accused the company of not properly examining how the platform’s design and operations could contribute to the spread of illegal products.
Temu rejected the EU’s decision, describing the fine as “disproportionate.” The company said it was “carefully reviewing the decision and assessing all options available to us,” while maintaining that it had worked “constructively” with European regulators throughout the investigation.
The retailer has now been ordered to pay the fine and submit a corrective action plan to the EU by August 28 to address the concerns raised by regulators. Failure to comply could lead to additional periodic penalties. Temu also retains the right to challenge the decision in EU courts, similar to the legal route chosen by Elon Musk following the fine imposed on X.
The EU’s decision followed a “mystery shopping exercise” carried out by regulators, during which investigators purchased and examined products sold on the platform. Authorities discovered multiple “non-compliant” goods, including electronic device chargers that failed basic safety standards.
Investigators also reported finding a high number of unsafe baby toys. Some of the toys contained chemicals that exceeded approved safety limits, while others included detachable parts that posed a potential suffocation hazard to children.
Temu has rapidly grown in popularity across Europe since entering the EU market in 2023 and now reportedly has around 130 million users within the bloc. Many consumers have been attracted to the platform because it offers low-cost goods shipped directly from sellers based in China.
However, scrutiny of the company intensified after the EU launched an investigation in October 2024. Regulators later concluded in July last year that Temu had breached key EU rules concerning the risks associated with illegal and unsafe products being sold online.
EU tech commissioner Henna Virkkunen described Temu as “a very big player in the European market” and warned that illegal products on the platform could easily become accessible to a large number of European consumers.
The fine against Temu comes just one day before the EU executive is expected to discuss the bloc’s broader approach toward China. Senior EU officials have increasingly raised concerns about what they describe as the growing economic threat posed by China, arguing that Europe must take stronger measures to protect its economy and businesses.
European leaders and local companies have also complained that Chinese firms benefit from heavy state subsidies, creating what they see as unfair competition within the European market.
On the same day the Temu fine was announced, the EU also revealed that it had launched an in-depth investigation into Chinese e-commerce giant JD.com’s proposed acquisition of German electronics retailer Ceconomy.
European regulators said the investigation would determine whether state subsidies enabled JD.com to offer an unusually high bid for Ceconomy, potentially distorting fair competition and influencing the outcome of the acquisition process.