In brief
Under the Digital Services Act, the EU has penalised Temu for letting illegal products remain available on its site, mandating an action plan and a compliance review by the end of August. The fine marks only the second time the Commission has used DSA powers, following a €120 million hit to X.
The European Commission has issued a €200 million ($232 million; £173 million) fine to Temu, a Chinese‑owned online retailer, after finding that the platform was offering unsafe baby toys, faulty chargers and other illegal goods.The DecisionThe Commission said Temu had failed to diligently identify, analyse and assess the systemic risks posed by the products sold on the site. A mystery‑shopping exercise carried out by an independent tester found that a ‘high percentage’ of chargers purchased through Temu failed basic electrical safety tests, while a large proportion of baby toys contained chemicals above legal limits or had small detachable parts that posed suffocation hazards.The fine is part of an investigation that began in October 2024. Temu has been scrutinised for its obligations as a Very Large Online Platform under EU law. The company accepted the penalty but considers it disproportionate and said it was still reviewing the decision carefully and considering all available options.Compliance DeadlineIn addition to the €200 million payment, the Commission has demanded that Temu present a detailed action plan to remove the faulty products and prevent future safety breaches. The plan must be filed by 28 August, after which the Commission will have two months to decide whether the company has met its obligations.Digital Services ActThis is only the second enforcement action using the Digital Services Act for content‑related violations. The first was a €120 million penalty imposed on Elon Musk’s X social‑media network in December of the same year.Commission CommentEuropean Tech Commissioner Henna Virkkunen told reporters that the decision conveyed a very strong message to Temu and a broader warning to other platforms about the importance of safeguarding consumers.Corporate ResponseA Temu spokesperson said that the firm respects the need for clear rules but argued that the decision was based on conditions from 2024 and did not reflect the state of its systems today. We disagree with the European Commission's decision and consider the fine to be disproportionate, the statement added.ImplicationsThe sanction underscores the EU’s growing willingness to use the Digital Services Act to enforce safety standards on large online marketplaces. It also highlights the regulatory pressure that companies face as consumer safety and data protection obligations intersect with the rapid growth of e‑commerce.SourcesThis article draws on the BBC News report released on 28 May 2026 and the official statements from the European Commission and Temu.
