EU fines Temu €200 million over illegal products on platform

EU regulators said Temu shoppers were very likely to encounter illegal items, then hit the Chinese e-commerce giant with a €200 million penalty that puts marketplaces themselves in the enforcement crosshairs.

The European Commission said Temu breached the Digital Services Act by failing to diligently identify, analyse and assess the systemic risks tied to illegal products on its platform. It said Temu’s 2024 risk assessment leaned on broad e-commerce sector material rather than evidence specific to Temu’s own marketplace, and that the company seriously underestimated how often European Union consumers would run into illegal items.

The commission backed that conclusion with a mystery shopping exercise. It found that a very high percentage of selected chargers failed basic safety tests, while a high percentage of tested baby toys posed medium-to-high safety risks, including chemicals above legal limits and suffocation hazards from detachable parts. Regulators also said Temu had not properly assessed how its recommender systems and product-promotion programmes involving affiliated influencers could amplify the spread of illegal goods.

The action was the product of a lengthy probe that began when the commission opened formal proceedings on Oct. 31, 2024, after earlier requests for information in June and October that year. The commission said it preliminarily found Temu in breach on July 28, 2025, and it is still examining other parts of the platform’s compliance, including whether its service design is addictive, whether it recommends content and products properly, and whether it gives researchers access to data.

Temu must submit an action plan by Aug. 28, 2026, and the commission will assess it before issuing a final compliance decision about two months later. That means the €200 million fine may not be the last word. Brussels has warned that further penalties could follow in the coming months if Temu does not satisfy regulators that it can keep illegal and unsafe products off the service.

The case also reflects a broader shift in European enforcement. The commission moved against Temu after complaints from BEUC, the pan-European consumers’ organisation, and 17 of its national members. The penalty is only the second under the DSA, after Elon Musk’s X was fined €120 million in December 2025 for transparency breaches, underscoring the bloc’s determination to make major platforms police what reaches consumers.