This Thursday, the European Commission sanctioned the Chinese e-commerce platform with the largest fine imposed so far under the Digital Services Law. Brussels considers that Temu has not been able to detect or stop the sale of dangerous items reaching European consumers, from chargers to baby toys.
What exactly happened. Brussels accuses Temu of “not having identified, analyzed or evaluated with due diligence the systemic risks” derived from offering illegal products on its website, ensuring that this practice entails “potential harm” to EU users. This violates the Digital Services Act (DSA), the European regulation that forces large platforms to monitor what circulates through their services. The 200 million exceed the 120 that prevailed over the social network last December, so far the highest penalty under this regulation.
No filters. The Commission maintains that this is not a specific case of defective products, but rather a failure in the platform’s own security system. In the words of the Executive“the evidence collected indicates that European consumers are very likely to encounter illegal items in Temu.” The problem, therefore, would not be in a specific seller, but in the company’s inability to filter what it sells.
In detail. The research has been supported by several sources. The main one was a “secret shopping” exercise commissioned from an independent contractor, who has carried out laboratory tests on items chosen at random. The results, according to Brusselswere worrying in three categories:
- Electric chargers: a very high percentage did not pass basic safety tests, with the risk of short circuits and burns.
- Toys and objects for babies: Many presented medium or high severity hazards, either because they contained chemicals above legal limits or because of the risk of suffocation due to detached parts.
- Jeweler’s: Irregularities were also detected.
According to the statement, these data were compared with customs controls of the Member States and with the European market surveillance database (ICSMS). The three routes, according to the Commission, showed “high or very high” percentages of non-compliant products, although the organization has decided not to publish the exact figures.
Product bombing. In addition to the products, Brussels focuses on the technology of the platform. The Commission criticizes that Temu did not evaluate how the design of its own service (recommendation systems and promotional campaigns run by affiliated influencers) could be amplifying the dissemination of these articles. Furthermore, according to the agency, the company based its 2024 risk assessment on generic information from the sector and not on evidence on its own website, ignoring external studies (such as reports from consumer associations in Denmark and Finland) that already warned of the problem.
What Brussels says. “Temu’s risk assessment underestimates specific risks, lacks detail, is not based on solid evidence and is not comprehensive,” counted the vice president of the Commission responsible for Technological Sovereignty, Henna Virkkunen. The Finnish commissioner insists that these analyzes “are not mere bureaucratic procedures”, but the backbone of the DSA.
How much does the fine weigh? Although the figure is relatively large, represents only 0.38% of Temu’s estimated turnover for 2025 (calculated at around €53 billion), very far from the 6% limit allowed by regulations. The Commission justifies this moderation because the sanction is “proportionate” to other aspects that remain under investigation. The situation has been brewing since 2024based on complaints from the European Consumer Organization (BEUC) and 17 of its national associations.
And now what. Temu has three months to pay and until August 28 of this year to submit a “corrective action plan.” That document will then be reviewed by the European Committee for Digital Services, which will have one month to issue a response. After that, the Commission will have another month to set the final decision and on what date the fine will be applied. If the company does not correct course, it is exposed to periodic fines (daily, weekly or monthly) until it complies.
The company can appeal to the European courts, but Brussels has already warned that the fine is final and does not intend to lower it even if the company corrects its behavior.
Cover image | François Genon and own assembly
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