European Union regulators have fined Temu €200 million ($232 million) after concluding that the online marketplace failed to adequately prevent the sale of illegal products.
The penalty follows a nearly two-year investigation conducted under the Digital Services Act, which places strict obligations on major online platforms to manage risks related to harmful or unlawful content.
According to the European Commission, Temu did not sufficiently assess or address the dangers posed by illegal items being sold through its platform. Regulators also raised concerns about how the company’s recommendation systems and promotional strategies, particularly those involving influencers may have contributed to amplifying such risks.
Authorities indicated that additional penalties could still follow, as the broader investigation remains ongoing. Temu has been instructed to submit a corrective action plan by late August, which regulators will evaluate before deciding on further steps.
In response, Temu stated that it disagrees with the ruling, describing the fine as excessive. The company argued that the findings relate to an earlier assessment and do not reflect recent improvements it claims to have made in strengthening safety measures and platform oversight.
The case marks one of the most significant enforcement actions under the Digital Services Act, signaling the EU’s firm stance on holding large digital platforms accountable for consumer protection and online safety.