Temu calls Brussels' 200 million euro fine "disproportionate"

Chinese e-commerce giant Temu has declared the European Commission's 200 million euro fine "disproportionate," rejecting the EU's decision to penalize the company for failing to adequately assess the risks posed by illegal products on its platform.

The European Commission imposed the sanction for Temu's alleged violation of the Digital Services Act (DSA), specifically citing its failure to properly conduct an annual risk assessment. The Commission contends that Temu's evaluation focused too broadly on e-commerce risks, neglecting the specific dangers amplified by its recommendation algorithms, which they believe can increase the spread of illegal goods. An external inspection reportedly revealed significant safety issues, including chargers failing basic safety tests and baby toys posing risks due to illegal chemical substances or choking hazards.

Temu stated it is "not in agreement with the European Commission's decision" and is considering "all available options" for appeal. The company also asserted that it has "collaborated constructively with the Commission throughout the process" and has since implemented additional measures to enhance risk assessment, platform governance, and user protection.

Despite the fine being well below the maximum 6% of annual turnover allowed under DSA, EU sources deem it "proportional" given ongoing investigations into Temu's recommendation systems and data access for researchers. This marks the highest penalty the Commission has levied against a tech company for DSA non-compliance to date. Temu has been given until August 28, 2026, to submit a revised plan addressing the Commission's concerns.