EU Slaps Temu With €200 Million Fine Over Illegal Goods on Marketplace

The European Commission fined Temu €200 million ($232 million) for failing to prevent the sale of illegal products on its platform, citing a high risk for EU consumers to encounter items like baby toys in violation of the Digital Services Act. Regulators said Temu’s 2024 risk assessment was inaccurate and that its compliance measures were inadequate; Temu says it is strengthening governance and disagrees with the decision. Temu has until August 2026 to present an action plan addressing illegal product sales, with the EC able to levy fines up to 6% of global revenue if unsatisfactory. The case follows Europe’s earlier penalty on X, and a July start of a €3 flat fee on ecommerce parcels under €150 could further affect Temu’s EU business.