05/29/2026, 18.15
CHINA – EUROPEAN UNION
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EU takes action against China’s market distortions, imposes €200 million fine on Temu

The penalty was levied under the Digital Services Act, which seeks to protect European consumers from online platforms. Investigators discovered through direct purchases that some toys were toxic and several electronic devices did not comply with safety standards. Other platforms are now under the EU Commission's scrutiny.

Brussels (AsiaNews/Agencies) – The European Commission has fined Chinese e-commerce platform Temu € 200 million (about US$ 232 million), accusing it of selling illegal and dangerous products, including toxic toys and electronic devices that do not comply with European safety standards.

The European Union imposed the fine under the Digital Services Act (DSA), a law that has been used repeatedly against US companies in recent years to force large online platforms to better protect European consumers.

According to Brussels, Temu failed to "diligently identify, analyze, and assess the systemic risks" posed by the sale of illegal goods on its platform.

The Commission also accused Temu's recommendation and promotion algorithms of amplifying the spread of illegal or dangerous products and creating user addiction.

The Digital Services Act allows fines of up to 6 per cent of the turnover of companies accused of unfair practices, and the one imposed on Temu is the highest ever enacted.

According to the European Commission, Temu's global revenues in 2025 reached approximately € 53 billion, a figure that would have allowed for a fine exceeding € 2.8 billion.

The first fine resulting from the regulation was imposed last year against X, Elon Musk's social media platform, which was fined €120 million.

The EU investigation was formally launched in October 2024. Investigators purchased products directly from the platform to assess their compliance with European standards.

The checks revealed numerous electronic chargers that failed basic safety tests and a very high percentage of children's toys containing chemicals exceeding permitted limits or easily detachable components that could cause choking.

“Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive,” said Henna Virkkunen, Executive Vice President of the European Commission responsible for Digital Affairs in a prepared statement. "It leaves regulators, users, and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu,” she added.

The EU recently tightened its controls on large Chinese companies accused of benefiting from public subsidies and distorting competition in the European market.

At the same time, the European Commission opened a new investigation into the bid by Chinese giant JD.com to acquire German electronics group Ceconomy, a sign, according to experts, of an increasingly harsh stance toward Chinese economic expansion on the continent.

The Commission cited concerns that JD.com “may have received foreign subsidies that distort the EU internal market.”

Investigations have also been launched into Temu's competitors, Shein and AliExpress.

A meeting of European commissioners is also scheduled for today to discuss further trade and industrial measures that could be implemented in an attempt to navigate the increasingly complicated economic relationship with China.

Temu, controlled by the Irish-based Chinese group PDD Holdings, rejected the allegations, calling the fine "disproportionate."

The company maintains that it has cooperated "constructively" with EU authorities, adding that, "The decision relates to our first DSA assessment in 2024 and does not reflect the current state of our system”.

The company also announced that it is evaluating all available options, including a possible appeal before European courts.

The platform, which entered the European market in 2023, has experienced rapid growth thanks to the sale of low-cost products shipped directly from China.

According to the latest data cited by the Commission, Temu now has approximately 130 million users in the European Union. Temu must now submit a detailed plan to comply with European requirements by 28 August. Otherwise, it risks further periodic sanctions.

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