EU Fines Temu €200M for Illegal Products | DSA Record

EU Imposes Record €200 Million Fine on Temu for DSA Violations

The European Commission has fined Chinese e-commerce giant Temu €200 million for failing to prevent the sale of illegal and dangerous products on its platform, marking the largest penalty ever imposed under the European Union's Digital Services Act (DSA). The fine, announced on May 29, 2025, surpasses the previous record of €120 million levied against X (formerly Twitter) in December 2024.

The European Commission concluded that Temu, operated by PDD Holdings, has systematically neglected its obligation to curb the distribution of products that violate EU safety regulations. This landmark enforcement action signals Brussels' escalating crackdown on non-compliant online marketplaces, particularly those with supply chains originating outside the bloc.

What Did Temu Do Wrong Under the DSA?

The Digital Services Act, which came into full force in 2024, requires very large online platforms (VLOPs) like Temu—which has over 45 million monthly active users in the EU—to conduct rigorous risk assessments and implement measures to mitigate systemic risks, including the sale of illegal goods. The Commission found that Temu failed to adequately assess the risks associated with products sold via its marketplace.

According to the Commission's investigation, European consumers are 'highly likely' to encounter products that are illegal within the EU on Temu. Specific examples include:

• Unsafe phone chargers: A significant portion of chargers sold on Temu do not meet EU safety standards, posing fire and electric shock hazards.
• Dangerous baby toys: Many toys contain illegal chemicals or have small parts that easily detach, creating choking risks for children.
• Other non-compliant goods: The platform has been linked to the sale of products containing prohibited substances and lacking proper CE marking.

The Commission emphasized that risk assessment is not a 'checklist exercise' but 'the backbone of the digital legislation,' as stated by EU Commissioner for Tech Sovereignty, Henna Virkkunen. The EU Digital Services Act enforcement framework requires platforms to proactively identify and address such risks.

Why Is This Fine a Record Under the DSA?

The €200 million fine is the highest ever imposed under the DSA since the regulation took effect. To put this in perspective:

The DSA allows for fines of up to 6% of a company's global annual turnover. Given Temu's massive global revenues, the €200 million penalty, while record-setting, may still be relatively modest compared to what could be levied in future violations. The Commission is sending a clear message that big tech DSA compliance is non-negotiable.

What Happens Next? Temu's August 28 Deadline

Temu has been given until August 28, 2025, to submit a comprehensive action plan detailing how it will address the risks identified by the Commission. The plan must include concrete measures to:

1. Improve product safety screening and remove illegal items proactively.
2. Enhance transparency around seller verification and product testing.
3. Implement better reporting mechanisms for users and authorities.

If Temu fails to deliver an adequate plan or does not implement corrective measures, the Commission warned that additional fines could follow. The company could face daily penalty payments for continued non-compliance.

Broader Context: EU vs. Chinese E-Commerce Platforms

The fine against Temu is part of a wider EU crackdown on Chinese fast-fashion and discount e-commerce platforms. In February 2025, the Commission also launched an investigation into Temu's rival Shein over similar concerns—including the sale of illegal products such as childlike sex dolls and the use of addictive website designs. Shein is also under scrutiny for potential DSA violations.

Both Temu and Shein have experienced explosive growth in Europe by offering ultra-low prices, often shipping directly from China. However, regulators argue that their business models bypass EU consumer protection and safety standards. The EU China e-commerce regulation landscape is becoming increasingly tense, with potential trade implications.

'It is time for Temu to start complying with the law,' said Commissioner Virkkunen, underscoring the EU's determination to hold global platforms accountable regardless of where they are headquartered.

FAQ: EU Temu Fine and the Digital Services Act

What is the Digital Services Act (DSA)?

The DSA is a landmark EU regulation that sets strict rules for digital platforms on content moderation, transparency, and risk management. It applies to all online intermediaries serving EU users, with the strictest rules for very large platforms like Temu.

Why was Temu fined €200 million?

Temu was fined for failing to prevent the sale of illegal and unsafe products on its platform, violating DSA obligations to assess and mitigate systemic risks related to product safety.

Is this the biggest DSA fine ever?

Yes, the €200 million fine is the largest penalty imposed under the DSA to date, surpassing the €120 million fine against X in December 2024.

What happens if Temu doesn't comply?

Temu must submit a corrective action plan by August 28, 2025. Failure to comply could result in additional fines, including daily penalty payments, and potentially stricter measures such as temporary suspension of services.

Could other Chinese platforms face similar fines?

Yes. Shein is already under investigation for similar DSA violations, and the EU is increasing scrutiny of all non-compliant online marketplaces, especially those shipping goods from outside the EU.

Sources

This article is based on reporting by ANP for BNR Nieuwsradio, official European Commission statements, and Wikipedia entries on the Digital Services Act and Temu. For further details, consult the European Commission's official DSA enforcement page and the DSA Wikipedia article.