The European Commission's decision means that Temu will pay 200 million euros, equivalent to 2.1 billion Swedish krona. The fine is based on the EU's Digital Services Act, which requires platforms to identify and manage risks responsibly.
In its investigation, the Commission found a high probability that consumers will encounter illegal goods on the platform. As supporting evidence, investigators cited, among other things, test purchases of baby products containing chemicals above legal limits and posing choking hazards.
ALSO READ: Temu Fined Billions – Sells Toxic Toys
Temu announced today that it does not share the Commission's conclusions and believes the amount is unreasonable. The company argues that the EU's review is based on outdated data that is not representative of how their current procedures work.
Temu respects the goals of the Digital Services Act and the need for clear and consistent rules in the digital economy. However, we do not agree with the European Commission’s decision and believe the fine is disproportionate.
The decision relates to our first DSA assessment in 2024 and does not reflect the current status of our systems. Temu has had a constructive dialogue with the Commission throughout the process and has since taken further steps to strengthen risk assessment, platform governance and user protection.
Two Different Perspectives
In its response, Temu emphasizes that yesterday’s reporting contained factual errors. The company points out that the penalty is not formally issued due to individual products, such as toxic toys, but relates to the administrative risk assessment from 2024.
However, a difference arises in how the situation is described, which explains why the parties are talking past each other. From a legal perspective, it is correct that the fine applies to shortcomings in the company's system for complying with the law's requirements for risk assessment. At the same time, the EU Commission uses the dangerous toys as the primary evidence that Temu's system for filtering out illegal products has failed in practice.
From the authorities' side, demands are made on how the platform assesses and prevents the dangers that consumers are exposed to, something they believe Temu has not done.
Risk assessments are not a tick-box exercise – they are the backbone of the Digital Services Act. Temu’s risk assessment underestimates concrete risks, lacks specificity, is not based on solid evidence and is not comprehensive. This leaves supervisory authorities, users and the public in the dark about the true extent of the potential harm from illegal products sold on Temu, says Henna Virkkunen, EU Commissioner for the Digital Agenda.
The Path Forward for the Marketplace
Temu now has until August 28, 2026, to submit an action plan to the Commission. The plan should show in detail how they will rectify the deficiencies that the investigation has identified in their methods and systems.
If the company does not meet the requirements of the decision, further penalties in the form of running penalties await.
Temu announces that they are currently reviewing the Commission's decision and looking at what options are available to reach a solution.