The European Union has fined Chinese online shopping platform Temu €200million for failing to adequately prevent the sale of illegal and unsafe products to consumers across the bloc, marking one of the biggest penalties yet under the EU’s sweeping Digital Services Act (DSA).
The European Commission announced the sanction on Wednesday after concluding that Temu had breached EU rules designed to protect consumers from counterfeit, dangerous, and non-compliant goods sold through online marketplaces.
According to the Commission, investigators found that Temu failed to implement sufficient safeguards to stop the sale of prohibited products, including counterfeit electronics, unsafe toys, non-certified cosmetics, and other goods that violated EU consumer protection standards. Officials said many of the flagged products lacked proper safety documentation or carried misleading labels.
The fine is among the largest imposed under the Digital Services Act, the landmark EU law introduced to force major digital platforms to better police illegal content, counterfeit goods, disinformation, and consumer risks online. Temu, owned by Chinese e-commerce giant PDD Holdings, was designated a “Very Large Online Platform” by the EU in 2024 because of its rapid expansion across Europe.
EU regulators said the investigation revealed that consumers in several member states repeatedly encountered listings for:
- fake luxury products,
- uncertified electrical devices,
- dangerous children’s items,
- and products banned under European safety regulations.
European Commission Executive Vice-President Margrethe Vestager said online marketplaces operating in Europe “cannot ignore their responsibilities to protect European consumers simply because sellers are located overseas.” She added that digital platforms benefiting from access to the EU market must comply fully with European laws.
Temu responded by saying it “strongly disagrees” with parts of the Commission’s findings but pledged to cooperate with regulators and strengthen compliance systems. In a statement, the company said it had already invested heavily in product screening, seller verification, and consumer protection measures across Europe.
The company also said it plans to appeal aspects of the ruling while continuing discussions with EU authorities.
Temu has experienced explosive global growth since launching internationally in 2022, attracting millions of customers with ultra-low-priced products shipped directly from Chinese suppliers. However, the platform has faced increasing scrutiny in Europe and the United States over product safety, counterfeit concerns, labor practices, and data privacy issues.
The European Consumer Organisation (BEUC) welcomed the decision, arguing that consumers had been exposed to unsafe products for too long on fast-growing online marketplaces. Consumer groups across Europe have repeatedly warned about toxic materials, faulty electronics, and fake certification marks on products sold through cross-border e-commerce platforms.
Under the Digital Services Act, companies designated as Very Large Online Platforms can face fines of up to six percent of their global annual turnover if they fail to comply with EU rules. Analysts say the size of the penalty signals Brussels’ determination to enforce stricter oversight of global tech and e-commerce companies operating in Europe.
The case also highlights growing tensions between European regulators and Chinese technology firms as the EU increases scrutiny of imports, digital trade, state subsidies, and online platforms linked to China. In recent months, Brussels has opened multiple investigations into Chinese companies operating in sectors including electric vehicles, telecommunications, and e-commerce.
Industry analysts say the ruling could force online marketplaces across the world to adopt stricter monitoring systems for third-party sellers and imported products, particularly in regions with strong consumer protection laws such as the European Union.
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