In May 2026, the European Commission issued a 200 million euros fine to TEMU, a large Chinese online marketplace with about 130 million users in the EU. The Commission found the online platform non-compliant with key requirements set in the Digital Services Act (DSA).
Under the DSA, very large online platforms are required to assess risks linked to their services and adopt corresponding mitigation measures. After formal proceedings opened in 2024, the Commission found that the Chinese marketplace failed to comply with these obligations.
Commission’s assessment of DSA infringements: risk analysis must be comprehensive and proportionate
The Commission’s decision to fine the platform is based, among others, on an independent shopping exercise, the company’s risk assessment reports, and information shared by third-parties. In particular, the shopping exercise demonstrated that a significant number of non-compliant items could be purchased by EU consumers, with a high proportion of baby toys available failing safety tests. In addition, the e-commerce platform did not assess properly whether the design and functioning of its system could contribute to the spread of non-compliant products, including through the involvement of influencers. The Commission further argued that the platform’s risk assessment was based on general e-commerce risks, rather than taking into account the specific characteristics of TEMU’s services.
The failure to conduct a proper and comprehensive risk assessment constitutes a major infringement of the Digital Services Act. The total fine was determined considering the nature of the infringements, their gravity within the EU regulatory framework, and their duration over time. TEMU has time until 28 August to submit an action plan to the Commission to address these breaches.
Shaping online sales: DSA gives more accountability to online platforms and e-commerce
The EU framework on online platforms and e-commerce reflects a growing emphasis on accountability, transparency, and user protection in the digital environment. In this context, the Digital Services Act introduces strengthened obligations for platforms to assess and mitigate systemic risks, including the circulation of illegal or non-compliant products. This policy approach highlights that platforms have to take into account the specific features of their services, ensuring that their design, governance, and commercial practices do not facilitate the spread of harmful or unlawful content within the EU market.
Ensure compliance of your products, whether sold online or not
A recent report published by the Commission showed a growing volumes of non-compliant products reaching EU customs. Whether sold through traditional channels or online, EU authorities check products regularly and react accordingly.
For companies selling through online platforms, ensuring regulatory compliance at an early stage remains the most effective way to mitigate risks. This typically involves having products reviewed by regulatory experts against the applicable EU legislation before placing them on the market. Under different EU regulations, products placed on the EU market must be associated with a designated Responsible Person and may also require the appointment of an Authorised Representative.
Contact us here for any questions on product compliance.
References:
European Commission (2026). Commission fines Temu €200 million for breaching the Digital Services Act. Retrieved on 09/06/2026.
European Commission (2026). DSA: Making the online world safer. Retrieved on 09/06/2026.
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