EU Approves Temu's Action Plan After Imposing €200 Million Fine

The European Commission has approved an action plan submitted by China-based e-commerce platform Temu to comply with its obligations under the European Union's (EU) Digital Services Act (DSA). The company was fined €200 million in May. Temu will implement five measures to reduce risks associated with illegal products and prepare an interim assessment within four months.

Temu to Implement Five Measures Against Illegal Product Risks

The action plan approved by the European Commission requires Temu to identify the risk of illegal products reaching consumers through its online marketplace and improve its existing monitoring mechanisms. Under the plan, the company will conduct a platform-specific risk analysis and evaluate the effectiveness of its measures using reliable metrics. Deficiencies in content moderation systems will be examined, and investigations will assess whether product recommendation algorithms increase the visibility of illegal products.

Temu will also assess the possibility of sellers misusing platform features to increase the distribution of illegal product listings. The European Commission stated that the five identified measures are intended to help the company fulfill its risk assessment obligations under the Digital Services Act.

European Commission Gives Temu Four Months

Under the decision, Temu must complete an interim risk assessment within four months. The assessment will cover the six-month period ending on November 30, 2026, and outline the implementation status of the measures included in the action plan. The European Commission's approval of the plan does not mean that the company has fulfilled all its obligations. The effectiveness of the measures taken under the process will be examined, and their implementation outcomes will be monitored.

Temu, which operates under PDD Holdings, announced that it welcomed the European Commission's decision. The company stated that it would continue efforts to improve its compliance infrastructure following discussions with the regulatory authority.

Temu Was Fined €200 Million in May 2026

On May 28, 2026, the European Commission fined Temu €200 million for failing to adequately assess systemic risks associated with illegal products sold on its platform. The Commission's investigation found that the company's 2024 risk assessment relied on general e-commerce industry information rather than platform-specific data. Tests conducted during the investigation revealed that some chargers failed basic safety checks, while baby toys posed safety risks due to chemical substances and small parts. The Commission also concluded that Temu had not adequately assessed the impact of its product recommendation systems and influencer promotional programs on the spread of illegal products.

EU Monitors Product Safety Obligations of E-Commerce Platforms

The European Commission launched a formal investigation into Temu under the Digital Services Act in October 2024. The investigation examined whether the platform was fulfilling its obligations to identify and mitigate risks associated with illegal products.

EU legislation requires large online platforms to regularly assess systemic risks and implement effective measures to address them. Companies that violate their obligations under the Digital Services Act may face fines of up to 6% of their global annual turnover. The approval of Temu's action plan does not cancel the fine imposed in May. The company's compliance process will continue through the implementation of the planned measures and the evaluation of their outcomes.