The European Commission fined Temu €200M ($232M) for failing to prevent the sale of illegal products on its platform, citing a high risk for EU consumers to encounter banned items including baby toys and small electronics in violation of the Digital Services Act. Regulators said Temu's October 2024 risk assessment was inaccurate and may have led to inadequate mitigation measures. Temu entered Europe in 2023 with rock-bottom prices on clothing and electronics, and regulators opened a probe shortly after. In a statement to the Financial Times, Temu disagreed with the decision, called the fine “disproportionate,” and said it doesn't reflect the current state of its systems. The company has until August 2026 to submit an action plan, with further failure potentially triggering fines of up to 6% of annual global revenue. Temu is the second company penalized under the DSA after X's €120M fine.
