The Commission fines Temu €200 million for breaching the Digital Services Act

The European Commission has fined Temu €200 million under the Digital Services Act (DSA). The company failed to properly identify, analyse or assess the systemic risks arising from the sale of illegal products on its platform and the resulting harm to consumers in the European Union.

The evidence available to the Commission indicates that it is highly likely that EU consumers will encounter illegal items on Temu.  

Temu’s risk assessment for 2024 does not meet the standards set out in the DSA:

• It is based on general information about risks affecting the e-commerce sector as a whole, rather than on specific evidence regarding Temu’s own service, including public reports and evidence.

• The frequency with which EU consumers may encounter illegal items was seriously underestimated. Evidence obtained through a mystery shopper study, included in the Commission’s investigation, shows that a very high percentage of the chargers selected failed basic safety tests, whilst a high percentage of the baby toys analysed presented medium to high safety risks, as they contain chemicals exceeding legal safety limits or pose a choking hazard due to their detachable parts.

• It failed to adequately assess how the design of its service, including recommendation systems and product promotion programmes by affiliated influencers, could amplify the risks of the dissemination of illegal products.

Under the Digital Services Act (DSA), designated large online platforms are required to diligently assess the systemic risks associated with their services and to adopt appropriate mitigation measures.

The fine imposed today was calculated taking into account the nature of the infringement, its gravity in terms of affected EU users and its duration. Failure to carry out adequate risk assessments — one of the fundamental pillars of the Digital Services Act (DSA) — constitutes a particularly serious infringement of that Act. 

Next steps

Temu has until 28 August 2026 to submit an action plan to the Commission, as required by Article 75 of the Digital Services Act (DSA). The plan must detail the measures necessary to remedy the failure to comply with its risk assessment obligations. TheEuropean Digital Services Boardwill have one month from receipt of the plan to issue its opinion. The Commission will then have a further month to adopt its final decision and set a reasonable deadline for its implementation.

Failure to comply with the non-compliance decision may result in periodic penalty payments. The Commission continues to work with Temu to ensure compliance with the decision and the DSA in general.

Background

On 31 October 2024, the Commissionlaunched formal proceedings against Temuregarding its obligation to assess the systemic risks associated with the dissemination of illegal products on its platform. The Commission adopted preliminary findings in July 2025 and concludes them today with a non-compliance decision.

The infringement decision issued today is based, amongst other things, on Temu’s 2024 risk assessment reports and the 2025 interim report, the responses to the Commission’s formal requests for information of 28 June 2024 and 11 October 2024, information shared by third parties, and a mystery shopper test carried out by an independent testing organisation on behalf of the Commission. The investigation also drew on data from EU customs and market surveillance authorities, which revealed high rates of non-compliance among products sold on Temu in the categories analysed.

More information: European Commission.