Chinese online retailer Temu has been fined €200 million ($232 million) by European Union tech regulators for failing to do enough to prevent the sale of illegal products on its platform.
The penalty was announced on Thursday following the first phase of a wider investigation conducted under the EU’s Digital Services Act, which requires major online platforms to take stronger action against illegal and harmful content.
EU regulators said Temu failed to properly identify, analyse, and assess systemic risks related to illegal products sold on its marketplace and the resulting harm to consumers across the European Union.
The European Commission, the EU’s executive arm, also criticised the company for not adequately assessing how its recommendation systems and influencer-driven promotion programmes could amplify the spread of illegal goods.
In a statement, Temu rejected the findings, calling the fine “disproportionate” and saying it did not reflect the current state of its systems.
The company said the decision relates to its initial 2024 assessment and added that it has since strengthened its risk assessment frameworks, platform governance, and user protection systems.
Temu also said it had engaged constructively with the European Commission throughout the investigation and would continue cooperating with regulators while considering its legal options.
EU tech chief Henna Virkkunen said the fine sends a strong message about enforcement under the Digital Services Act.
She added that risk management remains a core requirement of the regulation and confirmed that Temu has been given until August 28 to submit an action plan for compliance.
Regulators will then assess whether the company has done enough to meet DSA obligations within two months of submission.
The Commission also confirmed that investigations into Temu are ongoing, including whether its platform design may be addictive and whether it adequately restricts the sale of illegal products while providing proper access to data for researchers.
Under the Digital Services Act, companies can face fines of up to 6 per cent of their global annual turnover for non-compliance.
The Temu penalty is the second enforcement action under the DSA, following a €120 million fine imposed on Elon Musk’s social media platform X in December.
