EU fines Temu 200 million euros over weak controls

2026-05-28

Illegal goods left to circulate

The European Commission, the executive arm of the European Union, said on Thursday it will fine China-based e-commerce site Temu 200 million euros, or about 37 billion yen, after finding that illegal goods were widely circulating and that it breached EU rules.

The action was taken under the EU's Digital Services Act, or DSA, and is the second fine under the law, which requires platform companies to take measures against illegal content, after X, formerly Twitter, in December 2025.

The Commission said Temu failed to properly assess the risks of illegal goods circulating on its online marketplace and neglected to take the necessary measures. 'There is a very high risk that EU consumers will encounter illegal products on Temu's site,' it said.

Safety assessments fell short

The Commission also said it had obtained its own evidence. Results from undercover checks and other investigations showed that many chargers sold on Temu had failed basic safety tests, it said.

For toys aimed at infants and young children, the Commission found products containing chemicals above EU legal limits and items with detachable parts that posed a choking risk. It also concluded that Temu had not properly assessed the risks that its product recommendation features and promotions by partner influencers could spread illegal goods.

In a statement on Thursday, EU senior vice president Henna Virkkunen criticised Temu, saying it had 'underestimated the concrete risks and is neither evidence-based nor comprehensive'.

Corrective action and national responses

The DSA allows fines of up to 6% of global revenue for companies that violate the rules. In serious cases, services can also be ordered suspended within the EU. The Commission said the amount in this case was calculated based on the nature and duration of the violations.

It also called on Temu to take prompt corrective action. The company must submit an action plan for improvements by Aug. 28, and the Commission warned that further fines would be imposed if it failed to comply with the instructions.

Countries and regions are stepping up measures against cross-border e-commerce from China, including Temu and Shein. The Trump administration in the US scrapped duty-free treatment for small imports from China in May 2025. The EU also plans to impose duties from this summer on small parcels worth less than 150 euros that had previously been exempt. The Japanese government is also considering measures.

European retailers have grown increasingly wary of a flood of cheap goods from China and elsewhere, urging EU member states and the Commission to respond. Under the guise of stopping the circulation of illegal goods, the Commission put Temu in the crosshairs of digital regulation penalties. In February 2026, it also opened a formal investigation into Shein for the same reason.

The Commission is also concerned about site designs that encourage consumer dependence. Separately from the DSA, it is also advancing consideration of new digital legislation to improve the safety of e-commerce.

If EU regulations lead Temu to change its systems, they could affect its business model in other regions, including Japan.

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