Authorities are increasing scrutiny of major digital marketplaces operating across Europe. The latest enforcement action highlights growing concerns about standards, oversight and consumer protection online.
EU regulators have fined Temu 200 million euros after finding that the shopping platform failed to properly assess risks linked to unsafe and illegal products sold to European consumers.
According to TV 2 and the European Commission, the case includes defective chargers, risky baby toys and suspected illegal listings on the platform.
The Commission said product-testing material showed that many chargers sold through Temu failed basic safety checks.
It also cited baby toys that could create choking risks or contain chemicals above EU legal limits.
Regulators found wider problems
Temu was fined under the Digital Services Act, the EU law that requires major online platforms to take responsibility for risks connected to their services.
For large marketplaces, the rules include stronger checks on illegal goods, clearer reporting to authorities, more transparency and better safeguards for consumers.
Temu, owned by PDD Holdings, expanded quickly in Europe after launching in the region in 2023.
Its low prices and wide product range helped it gain attention, but also brought growing criticism from consumer and business groups.
The company was later placed in the EU’s strictest category for online platforms. Regulators said Temu did not properly explain the dangers connected to illegal products sold through its marketplace.
The penalty sets a marker
According to TV 2, the fine is the largest penalty issued so far under the Digital Services Act. It exceeds the earlier DSA fine imposed on X.
The amount is significant, but the case may not be finished. EU scrutiny of Temu continues on separate tracks, including concerns about illegal products and platform design.
Danish consumer and business groups have welcomed tougher action.
Dansk Erhverv, one of Denmark’s largest business and trade organizations representing companies across retail, e-commerce and services, said the decision was necessary because foreign sellers on online marketplaces can create unfair competition for European companies that follow EU rules.
Temu called the fine “out of proportion,” writes TV 2. The company said the case concerns an earlier assessment and does not reflect its current systems.
Temu also said it has cooperated with the Commission and has taken further steps to strengthen platform management, user protection and internal controls.
The company must tell the Commission by August how it plans to fix the problems identified by regulators. Further penalties remain possible if EU officials decide its response is not enough.
Sources: TV 2, European Commission