EU Commission Slaps Temu with Record 200 Million Euro Fine Under Digital Services Act

Dangerous Toys and Faulty Electronics

EU Commission Vice President Henna Virkkunen sharply criticized the company's approach. "Risikobewertungen sind keine Box-Ticking-Übungen – sie sind das Rückgrat des Gesetzes über digitale Dienste," she stated. She added that Temu's risk assessment "unterschätzt konkrete Risiken, es fehlt ihr an Spezifität, sie stützt sich nicht auf solide Beweise und ist nicht umfassend."

The Commission also criticized Temu's business model, stating that partially non-transparent recommendation systems and influencer advertising could further amplify the spread of illegal products. These risks, the Commission argued, were not adequately addressed by the company.

Temu was classified as a very large online marketplace by the Commission in 2024, subjecting it to the DSA's strictest rules. Under Article 34 of the regulation, operators with more than 45 million monthly active users in the EU must systematically identify and mitigate potential risks.

Temu's Response and Next Steps

The company now has until August 28, 2026, to submit an action plan detailing how it will remedy the deficiencies. The European Board for Digital Services will then have one month to issue its opinion, after which the Commission will decide whether the proposed measures are sufficient. If they are not, further penalty payments can be imposed.

Temu operator Whaleco responded by stating it respects the DSA but considers the Commission's decision incorrect and the penalty disproportionate. A spokesperson said the matter concerns the past and does not reflect the current state, noting that Temu has since taken further steps to improve risk assessment and consumer protection.

The company's 2025 risk assessment report is publicly accessible and reportedly goes significantly beyond the 2024 version. Temu can either challenge the fine before European courts or accept it.

Broader DSA Enforcement

This is only the second time a violation of the Digital Services Act has been punished with a fine. The first was a 120 million euro penalty against platform X in December 2025. The DSA, which entered into force in 2022 and has been in effect since February 2024, allows for fines of up to 6 percent of a company's global annual revenue.

Proceedings under the DSA are also ongoing against Temu's competitor Shein, also from China. Those proceedings primarily concern an addictive platform design that allegedly prevents EU users from making informed purchasing decisions.

A significant number of extensive DSA proceedings from the early phase of the regulation are still pending. According to an evaluation by the German Federation of Consumer Organizations, the five largest shopping platforms in Germany removed nearly 70 million items in November 2025 alone, 30 million of which were classified as unsafe or banned.