The European Commission just handed Temu a €200 million ($232 million) bill for failing to stop illegal and unsafe products from flooding its platform. It’s the largest fine ever issued under the Digital Services Act, and it lands squarely on a company that has spent the last few years aggressively expanding into Western markets with rock-bottom prices and an addictive shopping experience.
The penalty, announced on May 28, 2026, caps a nearly two-year investigation that began in October 2024. EU regulators found that Temu, operated by Chinese parent company PDD Holdings, failed to adequately identify and assess systemic risks tied to illegal and unsafe products sold on its marketplace.
What the EU actually found
The investigation zeroed in on specific categories of hazardous goods. Faulty chargers and unsafe toys were among the items regulators flagged. Under the Digital Services Act, platforms classified as Very Large Online Platforms, or VLOPs, are required to take proactive measures to assess and mitigate these risks. Temu, according to the Commission, fell short of that standard.
The DSA requires VLOPs to conduct regular risk assessments, implement mitigation measures, and cooperate with regulators. Maximum penalties can reach 6% of a company’s global turnover, which means this $232 million fine, while record-setting for the DSA, could theoretically have been much worse.
