EU imposes €200 million fine on Temu for DSA breaches

The European Commission has fined Temu €200 million, approximately $232 million, for breaching the Digital Service Act (DSA) by failing to adequately assess systemic risks associated with illegal products on its marketplace. The regulator determined that consumers were “very likely to encounter illegal items,” a finding based on evidence of safety failures in electronic chargers and baby toys sold through the platform.

The penalty follows a formal investigation launched by the Commission in October 2024, which concluded that the Chinese e-commerce platform did not do enough to prevent illegal goods from appearing on its site. A preliminary ruling issued in July 2025 had already identified significant gaps in Temu’s risk assessment processes, setting the stage for the final enforcement action.

During the investigation, mystery shoppers purchased electronic device chargers and baby toys from the platform. The Commission reported that a “very high percentage” of the chargers failed basic safety tests. Furthermore, a high percentage of the tested baby toys posed safety risks, including exceeding legal limits for certain chemicals or presenting suffocation hazards.

Temu has been ordered to submit a remedial action plan to the Commission by 26 August 2026. The deadline is intended to address the identified breaches of the DSA. If the platform fails to comply with this order, it may face additional periodic penalty payments.

The enforcement action against Temu occurs against a backdrop of increased regulatory scrutiny for Chinese e-commerce giants in Europe. Rival retailer Shein is currently facing a similar DSA investigation after French regulators identified listings for “child-like sex dolls” on its platform last year.