BRUSSELS, Belgium – The European Union has fined Chinese-owned online retailer Temu €200 million (R4.3 billion) for allowing the sale of illegal products, including dangerous baby toys and defective chargers, EU regulators announced on Thursday.
The penalty marks only the second fine imposed under the EU’s Digital Services Act (DSA), following a €120 million fine against Elon Musk’s X platform in December 2024.
EU regulators found that European consumers are “very likely to encounter illegal items” on Temu, and determined the company “seriously underestimated how often EU consumers are likely to” see such products.
“The company failed to diligently identify, analyse and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union,” the EU said in a statement.
The platform, which entered the European market in 2023, has grown rapidly to 130 million users across the bloc. However, it has faced intense scrutiny since the EU opened an investigation in October 2024, which preliminarily found in July 2025 that Temu had breached regulations over the risks of illegal products.
“Temu is a very big player in the European market,” EU tech commissioner Henna Virkkunen told reporters, adding that its size meant many EU consumers would be able to access illegal products.
Dangerous products discovered
The EU criticised Temu’s 2024 risk assessment, saying it “falls short of the standards”. Inspectors discovered baby toys, such as rattles, containing chemicals that exceeded legal safety limits, chargers that failed basic safety tests and problematic jewellery.
The European Commission said Temu failed to properly assess how the platform’s design “could amplify dissemination risks of illegal products”.
Under the DSA, major digital platforms including social media apps and online retailers must conduct risk assessments to identify potential dangers and implement measures to address them. Fines can reach up to 6% of a company’s total worldwide annual turnover.
Temu’s revenues totalled $61.7 billion last year. Whilst the EU could have imposed a higher fine, a European Commission official said the amount was proportionate to the breach since it concerned a risk assessment for one year where the conclusions were “clear-cut”.
Company response
Temu disputed the fine, calling it “disproportionate”.
“We are carefully reviewing the decision and assessing all options available to us,” the company said in a statement, insisting it worked “constructively” with regulators.
The company added it has “since implemented additional measures to strengthen risk assessment, platform governance and user protection”.
Temu must now pay the fine and present a plan to the EU by 28 August outlining actions it will take to address the breaches. Failure to comply could result in periodic penalty payments. The company can also appeal the fine in EU courts, as Musk has already done.
Broader investigation continues
The EU continues to investigate other suspected breaches in the same probe, including the use of addictive design features that could harm users’ physical and mental wellbeing, and how Temu’s systems recommend content and products.
The fine comes as the EU prepares to debate its approach to China, with top officials warning that Europe must take a tougher stance to defend its economy and level the playing field.
Brussels has already increased anti-subsidy investigations into Chinese companies investing in Europe. On Thursday, it opened an in-depth probe into Chinese e-commerce giant JD.com’s bid for Ceconomy, a major German electronics retail group, on suspicion the deal was boosted by state subsidies.
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