EU hits Temu with €200M DSA fine over unsafe products on platform

The European Commission fined Chinese marketplace Temu €200 million ($232M) under the Digital Services Act, finding the platform failed to adequately assess and mitigate systemic risks tied to illegal goods sold through it. A mystery-shopping investigation, opened in October 2024, turned up chargers that failed basic electrical safety tests and baby toys with banned chemical levels or choking hazards from detachable parts.

This is only the second DSA content-related penalty ever issued, following a €120M fine against X in late 2025. Temu must submit a remediation action plan by 28 August, after which the Commission has two months to judge compliance. The company disputes the ruling, calling it disproportionate and arguing it reflects 2024-era systems rather than current controls, and is weighing its options.

The decision signals that the EU intends to enforce platform liability for third-party sellers aggressively against Very Large Online Platforms. UK consumer group Which? is pushing London to wield equivalent powers under the new Product Regulation and Metrology Act, suggesting regulatory pressure on marketplace-model retailers is poised to broaden beyond the bloc.