The European Union has imposed a €200 million ($232 million) fine on Chinese-owned online retail platform Temu for allegedly allowing the sale of illegal and unsafe products to consumers across Europe.
EU regulators announced the penalty on Thursday, accusing the fast-growing e-commerce giant of failing to adequately assess and address the risks posed by illegal goods sold on its platform.
According to the European Commission, consumers in the bloc were “very likely to encounter illegal items” on Temu, while the company had “seriously underestimated” how often such products appeared on the platform.
“The company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union,” the EU said in a statement.
The investigation reportedly uncovered dangerous products including baby rattles containing excessive chemical substances, defective phone chargers that failed safety tests, and jewellery considered non-compliant with EU standards.
Temu rejected the EU’s conclusions, describing the fine as “disproportionate.”
The company said it was reviewing the decision and considering its legal options, while insisting it had cooperated constructively with regulators throughout the investigation.
“We have since implemented additional measures to strengthen risk assessment, platform governance and user protection,” the company said.
Temu entered the European market in 2023 and has rapidly grown to about 130 million users across the bloc.
The probe into the platform began in October 2024 under the EU’s Digital Services Act, a landmark law designed to regulate large online platforms and protect users from harmful or illegal online content and products.
EU Tech Commissioner Henna Virkkunen said Temu’s size and popularity meant many European consumers were exposed to unsafe products.
“Temu is a very big player in the European market,” Virkkunen told reporters.
Thursday’s sanction marks only the second major fine issued under the Digital Services Act, following a €120 million penalty imposed on X in December.
Under the legislation, major digital platforms and online marketplaces are required to conduct regular risk assessments and take measures to reduce the spread of illegal or harmful products and content.
The European Commission said Temu’s 2024 risk assessment fell below required standards and also criticised the platform’s design, warning it could contribute to the wider circulation of illegal goods.
Despite the hefty penalty, EU officials said the amount reflected the scope of the breach and was considered proportionate.
Temu has until August 28 to submit a compliance plan detailing how it intends to address the violations. Failure to comply could result in additional penalties.
The company also retains the right to challenge the fine in EU courts.
The development comes as Brussels intensifies scrutiny of Chinese companies operating in Europe, amid growing concerns over competition, subsidies, and consumer protection within the bloc.
