Temu, the Chinese e-commerce platform owned by PDD Holdings, was fined €200 million ($232 million) on Thursday by the European Union for failing to prevent the sale of illegal products, including hazardous baby toys and unsafe electronics.
The E.U. Commission, the E.U.'s executive arm, said the penalty was issued under the Digital Services Act, a law that requires large online platforms to identify and address the risks of harmful or illegal content and goods. Companies can face fines of as much as 6% of their global annual turnover for violations.
During an undercover purchasing exercise, regulators tested goods available on the platform and discovered that baby toys frequently failed safety standards — with chemical contamination above permitted thresholds and small detachable components that children could swallow. Electronic chargers available through the platform were also found to be unsafe when put through standard testing. The commission also faulted Temu's recommendation algorithms for amplifying the spread of illegal products.
"Temu's risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive," E.U. Commission Executive Vice-President Henna Virkkunen said in a statement. "It leaves regulators, users, and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu. Now it is time for Temu to comply with the law."
Temu disputed the outcome, saying in a statement: "We disagree with the European Commission's decision and consider the fine to be disproportionate." The company said the ruling stems from an evaluation conducted in 2024, arguing the findings are outdated and no longer representative of how the platform operates.
Regulators set a deadline of Aug. 28 for Temu to put forward a remediation plan, which the commission will then evaluate. If the company does not meet that obligation, it could face ongoing financial penalties. Temu said it is also considering all legal options, according to Reuters.
According to Reuters, the probe was launched after BEUC, a pan-European consumer advocacy group, along with 17 affiliated national organizations, filed complaints with regulators. Regulators said they will continue a separate, broader inquiry into Temu covering issues including the addictive design of its platform and data access for researchers.
The action against Temu marks only the second enforcement of the DSA since the regulation came into force. X $TWTR, the social media platform controlled by Elon Musk, was the first company to be penalized under the law, receiving a €120 million fine in December 2025. Temu has 92 million users in the E.U.