The European Union has fined Chinese online retailer Temu €200 million for breaching rules on the sale of illegal products under the Digital Services Act (DSA). The fine was issued on Thursday, May 28, following a nearly two-year investigation sparked by complaints from pan-European consumers’ organisation BEUC and its national members.
Key Takeaways
The European Union fined Chinese online retailer Temu €200 million for breaching rules on illegal product sales under the Digital Services Act (DSA). The fine follows a nearly two-year investigation prompted by consumer complaints. Temu must submit an action plan by August 28 to comply with DSA regulations, with regulators set to decide in October if further penalties are needed.
The European Commission criticized Temu for failing to adequately identify and assess risks associated with illegal products sold on its platform. The commission also faulted the company for not properly evaluating how its recommender systems and influencer promotions could amplify these risks. As part of the ruling, Temu has until August 28 to deliver an action plan that regulators will assess, with a decision on whether further penalties are needed due in two months.
Temu has expressed disagreement with the European Commission’s decision, calling the fine disproportionate. 'We respect the objectives of the Digital Services Act and the need for clear, consistent rules across the digital economy,' Temu said in a statement reported by Reuters. 'However, we disagree with the European Commission’s decision and consider the fine to be disproportionate.'
EU tech chief Henna Virkkunen emphasized that risk management is a cornerstone of the DSA. The commission's action against Temu highlights its commitment to enforcing regulations aimed at ensuring consumer safety and fair competition in the digital marketplace.
How this summary was created
This summary synthesizes reporting from 10 independent publishers using AI. All sources are cited and linked below. NewsBalance is a news aggregator and media literacy tool, not a news publisher. AI-generated content may contain errors or inaccuracies — always verify important information with the original sources.