BrusselsNew fine from the European Commission against a large platform from outside the EU bloc. Brussels announced this Thursday that it has imposed a sanction of 200 million euros on the Chinese company Temu for allowing illegal products to be sold on its portal. “The evidence available to the European Commission indicates that it is very likely that consumers in the European Union will find illegal items on Temu,” the EU executive itself concludes in a statement.
Sources from the EU executive assure that they have been able to verify the indications they had about Temu and state that the Chinese company “seriously underestimates” the ease and frequency with which European consumers can find illegal items under the regulations of the European Union and its member states. Thus, Brussels says that the Chinese platform, which imports very cheap products from the Asian giant and sells them retail, “has failed to diligently identify, analyze, and assess the systemic risks of illegal products offered on its platform,” with the consequent “harm” to consumers in the European Union.
Along the same lines, the European Commission also criticizes the recommendation and promotion systems of some of the products sold on the platform and assures that instead of punishing illegal products, it has recommendation systems and advertises through affiliated influencers who “amplify the risks of dissemination” of these types of items. Specifically, the European Commission highlights that a “very high” percentage of chargers fail basic safety tests, and that a “high” percentage of toys tested for babies present medium or high severity safety risks, as they contain chemicals that exceed legal safety limits or pose choking hazards due to detachable parts.
The threat of more sanctions
Brussels warns Temu that if it continues to breach European regulations, it could face even more sanctions. Thus, the European Commission reminds it that it now has until August 28, 2026, to present an action plan to guarantee to the EU authorities that it will comply with the Digital Services Act, which is what it is currently infringing. Afterwards, the European Commission will have two months to evaluate and issue a decision on the reform plan presented by Temu and will establish a “reasonable period” for its implementation. However, if the Chinese company does not do its job, Brussels warns it that it may impose “periodic penalties.”