European Commission fines Temu 200 million for Digital Services Act violations

The European Commission has imposed a 200 million fine on Chinese e-commerce giant Temu for violating the Digital Services Act. The penalty was announced on Thursday and marks one of the significant enforcement actions under the EU's digital regulation framework.

The European Commission levied a 200 million fine against Chinese online marketplace Temu on Thursday, citing violations of the Digital Services Act (DSA) — the European Union's landmark legislation governing digital platforms and online services.

The fine represents one of the more substantial penalties issued under the DSA since the regulation came into full force. The Digital Services Act sets out obligations for large online platforms regarding transparency, user safety, and the handling of illegal content and products, with the aim of creating a safer digital environment across EU member states.

Temu, which has rapidly expanded its presence in European markets by offering heavily discounted goods shipped directly from Chinese suppliers, has faced growing scrutiny from regulators over product safety standards and compliance with EU rules. The platform was designated as a Very Large Online Platform (VLOP) under the DSA, subjecting it to the strictest tier of obligations under the law.

The Commission's decision underscores the EU's determination to enforce digital market rules against major international platforms, regardless of their country of origin. Authorities have previously opened formal proceedings against Temu over concerns related to the sale of potentially dangerous products and the platform's recommendation algorithms.