EU Fines Temu €200M Over Illegal Product Sales

The European Commission has hit Chinese-owned shopping platform Temu with a €200 million ($232 million) fine, BBC Business reported Thursday. Regulators concluded the retailer failed to adequately assess risks posed by illegal or dangerous goods sold through its marketplace.

Investigators Found Dangerous Goods at Scale

Undercover testing conducted by an independent organisation formed the backbone of the Commission’s case. A significant share of chargers purchased through Temu failed basic electrical safety checks. Baby toys fared no better. Many contained chemicals exceeding legal thresholds. Others featured small detachable parts capable of causing suffocation in young children.

Regulators said Temu had not done enough to systematically identify, analyse, or act on those risks. The company now faces a hard deadline. It must submit a remediation plan to the Commission by 28 August. Regulators will then have two months to assess whether the response is sufficient.

Also Read: What Is the EU Digital Services Act and Who Does It Cover?

Background: A Year-Long Investigation Under EU Digital Law

Temu came under formal scrutiny in October 2024. The probe centred on its obligations as a designated Very Large Online Platform under the EU’s Digital Services Act, a framework designed to hold major internet companies to stricter content and product safety standards. The DSA grants the Commission broad enforcement powers, including the authority to levy substantial financial penalties.

Thursday’s fine is only the second the Commission has ever issued under the DSA for content-related violations. The first was a €120 million penalty against Elon Musk’s X social network, handed down in December 2025.

Also Read: EU Tech Commissioner Henna Virkkunen Signals Tougher Enforcement Push

Temu Pushes Back, Calls Fine Disproportionate

The retailer wasted little time disputing the outcome. A company spokesperson told BBC Business that the decision reflected the state of Temu’s systems in 2024 and did not represent how the platform operates today. Temu acknowledged the need for clear rules but said it considered the penalty excessive and was reviewing all options, including potential legal challenges.

EU Tech Commissioner Henna Virkkunen said the action was intended to send a firm signal. Her message was directed not just at Temu but at any large platform weighing its obligations under European law.

Temu’s Chinese parent company has already seen financial pressure mount this year amid ongoing trade tensions. The additional regulatory burden may further complicate its European growth strategy.

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