Brussels, June 1, 2026 – The Europe Today: The European Union has imposed a €200 million fine on Chinese online retail platform Temu after regulators concluded that the company failed to adequately prevent the sale of illegal and potentially dangerous products to consumers across the bloc.
The penalty, announced by the European Commission, is the largest fine issued to date under the Digital Services Act (DSA), a landmark law designed to make major online platforms more accountable for risks posed to users.
According to EU regulators, Temu did not properly assess or mitigate risks associated with products sold through its marketplace, leaving European consumers highly likely to encounter illegal goods. Officials identified a range of products that allegedly violated EU safety standards, including unsafe electrical chargers and toys linked to choking hazards and breaches of chemical safety regulations.
Henna Virkkunen, the EU’s digital commissioner, said the case focused on one of the fundamental requirements of the Digital Services Act.
“This is about risk management. It is very much a cornerstone of our DSA,” Virkkunen told reporters in Brussels, adding that the decision sends a strong signal to online platforms operating within the European market.
As part of the ruling, Temu has been instructed to submit a revised risk assessment and action plan by August 28. European regulators will then evaluate whether the company has taken sufficient measures to comply with EU regulations.
The Commission noted that additional sanctions remain possible as separate investigations continue into whether Temu employs addictive platform design features and whether its recommendation algorithms and influencer marketing programmes contribute to the spread of illegal products.
In response, Temu said it disagrees with the decision and considers the fine disproportionate. The company argued that the ruling is based on its initial DSA assessment conducted in 2024 and does not reflect improvements made to its current compliance systems.
The investigation began nearly two years ago following complaints filed by the European consumer organisation BEUC and several national consumer groups.
Since entering the European market in 2023, Temu has experienced rapid growth and is estimated to have around 130 million users across the European Union. The €200 million penalty represents approximately 0.4 percent of the global turnover reported last year by its parent company, PDD Holdings.
Under the Digital Services Act, companies found in serious breach of the rules can face fines of up to six percent of their annual global revenue.
The ruling marks only the second major financial penalty imposed under the legislation. In December last year, the EU fined X, owned by Elon Musk, €120 million for separate violations related to digital content regulations.
Temu retains the right to appeal the decision through the appropriate legal channels.
