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- EU issues its second ever Digital Services Act fine to Temu, after X
- This is the first of its kind relating to physical products
- Electrics and baby toys failed tests, prompting investigation
Chinese ecommerce giant Temu has been issued a €200 million ($232 million) fine by the European Union for breaching the Digital Services Act – a set of regulations designed to keep consumers safe from harmful content and prohibited products.
Temu has become the second company to be hit with a DSA fine since it came into force in late 2022, second only to X which was hit with a €120 million fine.
This time around, the EU's fine relates to the sale of prohibited and dangerous goods, including electronic chargers that failed basic safety tests.
Temu hit with €200 million DSA fine
European investigators carried out anonymous mystery shopping exercises on the platform to discover the dodgy chargers, as well as a number of baby toys that posed safety risks either due to toxic chemicals or parts that created suffocation hazards.
Additionally, the European Commission argued that Temu failed to consider how recommendation systems and influencer promotions could "amplify [the] dissemination risks of illegal products."
"Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive," EU Tech Sovereignty, Security and Democracy EVP Henna Virkkunen commented.
The company has now been given until August 28, 2026 to submit an action plan under Article 75 of the DSA – failure to do so could result in further fines.
A Temu spokesperson told TechRadar Pro they believe the fine to be "disproportionate."
"We will continue to engage with regulators in good faith and work toward a marketplace that serves consumers, businesses, and communities responsibly," they added. "We are reviewing the decision carefully and considering all available options."
Temu also stressed that "the decision relates to [its] first DSA assessment in 2024 and does not reflect the current state of [its] systems," having "engaged constructively" to "strengthen risk assessment, platform governance and user protection."
Though this is the second DSA fine ever imposed, it's also the first of its kind relating to physical products. An earlier X fine in late 2025 related to the platform's services, including its blue checkmark verification plans.
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