The low-cost Chinese e-commerce platform Temu was fined 200 million euros ($232 million) by the European Union on Thursday for failing to spot and curb the sale of illegal products.
The European Commission, the bloc’s executive arm, said Temu had violated the European Union’s Digital Services Act, the bloc’s wide-ranging law that polices online practices. Temu is required to submit a plan to address the breaches by Aug. 28. It could also appeal.
The commission opened its investigation into Temu in 2024, one year after the company first expanded into Europe, amid what it called “a steady surge” in products sold online that it said were “unsafe, counterfeit or noncompliant.” The goods were potentially harmful to consumers, the environment and “fair competition,” officials said.
The European Union said on Thursday that Temu had been subject to a mystery shopping exercise as part of the investigation. In that test, “a very high percentage” of chargers failed basic safety tests and many baby toys “posed safety risks.” The toys contained chemicals that were above legal limits or posed suffocation hazards, the statement noted.
The fine was the second against a company for violating the Digital Services Act. The commission previously fined X the equivalent of $139 million over transparency issues under the act. Technology firms have been hit with larger fines under other E.U. rules.
“We will continue to engage with regulators in good faith, while reviewing the decision carefully and considering all available options,” a Temu spokesperson said in a statement.
