The European Commission has announced a €200 million ($232 million) fine against Chinese-owned e-commerce giant Temu, marking only the second major penalty issued under the bloc’s landmark Digital Services Act (DSA) for regulatory non-compliance. The penalty stems from a months-long investigation that found the platform failed to properly police the sale of illegally unsafe products, ranging from dangerous children’s toys to non-compliant electrical chargers that put consumers at serious risk.
The inquiry into Temu’s practices launched back in October 2024, after regulators raised concerns that the company was not meeting its mandatory obligations as a Very Large Online Platform (VLOP) — a classification for large digital services that requires heightened risk monitoring under EU law. As part of the probe, an independent third-party testing firm conducted a widespread mystery shopping exercise to sample products sold on Temu’s platform. The results were alarming: a large share of the phone and device chargers purchased failed basic global electrical safety standards, and a similarly high proportion of baby toys were found to violate EU safety rules. Many of the infant toys contained toxic chemicals above permitted legal limits, while others included small detachable components that posed immediate choking and suffocation hazards to young children.
In announcing the penalty, EU Technology Commissioner Henna Virkkunen emphasized that the ruling was designed to send an unambiguous, strong message to Temu and other large online platforms operating in the bloc. Regulators found that Temu did not adequately fulfill its legal requirement to diligently identify, analyze, and address the systemic risks that unregulated unsafe products pose to European consumers.
Beyond the financial penalty, Temu is required to submit a comprehensive corrective action plan outlining how it will fix its regulatory gaps by August 28, 2025. After receiving the plan, the European Commission will have two months to review the proposed changes and determine whether they meet EU compliance standards.
In an official response following the announcement, a Temu spokesperson stated that the company disagrees with the commission’s ruling and considers the €200 million fine disproportionate. The spokesperson added that the decision addresses conditions from 2024 and does not reflect updates the platform has already made to its safety and compliance systems. Temu says it is currently conducting a full review of the ruling and evaluating all possible next steps, including potential legal pushback.
This penalty is only the second fine issued for content and product regulatory violations under the DSA, following a €120 million penalty imposed on Elon Musk-owned social media platform X (formerly Twitter) in December 2024. The case signals that EU regulators are ramping up enforcement of the DSA, holding large global digital platforms accountable for meeting strict consumer protection and risk management requirements when operating in the European single market.