Brussels, 28 May 2026
The European Commission imposed a €200 million fine on Chinese online marketplace Temu on Thursday for violating the Digital Services Act by failing to adequately assess and mitigate risks posed by illegal and dangerous products sold on its platform.
A Landmark Digital Services Act Penalty
The penalty marks one of the most significant enforcement actions under the DSA, which came into force in February 2024 as a regulatory framework designed to curb harmful practices by large tech platforms. The Commission said Temu’s mandatory risk assessment underestimated concrete dangers, lacked solid evidence, and was not comprehensive.
Henna Virkkunen, the European Commission Vice-President responsible for digital policy, sharply criticized the company’s compliance efforts. “Temu’s risk assessment underestimates specific risks, is too unspecific, does not rely on solid evidence, and is not comprehensive,” she said in a statement.
She added that the assessment failed to show “the actual extent of the potential harm” caused by illegal products sold through Temu. With around 130 million customers in Europe, Virkkunen noted, such products reach a vast number of EU citizens.
The Commission had previously issued multiple requests for Temu to conduct the required risk evaluations under EU digital laws — namely, to analyze and minimize potential consumer harm from products on its platform and to ban non-compliant sellers. The company did not comply adequately, prompting Thursday’s financial sanction.
Dangerous Chargers and Toxic Toys
EU officials highlighted specific product categories where testing revealed alarming failure rates. A “very high percentage of the selected chargers” failed basic safety tests, according to the Commission. Meanwhile, a “high percentage of the baby toys tested” exceeded chemical limits or posed a choking hazard due to detachable parts.
The Commission also faulted Temu for basing its risk assessment on general information about risks across the entire e-commerce sector rather than on “concrete evidence about its own service,” including public reports and tests, as required by law.
Temu, which launched in Germany in spring 2023, has drawn attention for its ultra-low prices and steep discounts. The company reported a global annual revenue of €53 billion in 2025, making the €200 million fine a relatively small fraction of its turnover.
Crackdown on Low-Value Imports
The fine is not the first regulatory blow for the platform. Temu previously had to pay €120 million over transparency shortcomings. Meanwhile, proceedings under the DSA are also underway against its Chinese competitor Shein.
The EU is taking broader steps to address the surge in low-value imports. In 2024, around 12 million parcels arrived in the EU daily, a sharp increase from the previous two years. Starting in July, a €3 fee will apply to every package with a value of up to €150.
This measure is temporary until a new platform is expected to launch in 2028, at which point all goods imported into the EU will be subject to customs duties from the first euro. The moves reflect growing concern in Brussels over the safety and competitive impact of cheap, direct-to-consumer shipments from outside the bloc.