The European Commission has fined Temu, a China-founded online marketplace, 200 million euros (US$233 million) after finding it did not do enough to prevent illegal products from being sold on its platform in the European Union under the bloc’s Digital Services Act.

Regulators said Temu failed to properly assess risks tied to illegal products, including how its recommender systems and product-promotion programs run by affiliated influencers could amplify those risks.

The decision follows a nearly two-year investigation that began after complaints from pan-European consumer group BEUC and 17 national member organizations.

Temu said it was reviewing the decision and would continue engaging with regulators.

The Commission gave the company until August 28 to submit an action plan. Regulators will assess it, and a decision on compliance is due within two months after that. Further penalties could follow.

Under the Digital Services Act, companies can be fined up to 6% of global annual turnover. Temu is the second company to be penalised under the law, after X.

🔗 Source: Reuters

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