Temu, the Chinese-owned ultra-fast fashion marketplace, has been hit with a €200m (£172m) fine by Brussels after a landmark investigation found the platform’s algorithms and influencer networks actively helped spread dangerous and illegal products across Europe.
Two-year probe triggered by consumer complaints
The penalty, imposed by the European Commission under the first phase of enforcement of the Digital Services Act (DSA), follows a nearly two-year probe into the platform’s compliance with EU rules. Regulators determined that Temu failed to implement adequate controls over the sale of prohibited goods and did not provide sufficient protection for consumers in EU member states.
The investigation was triggered by complaints from the European Consumer Organisation (BEUC) and 17 national consumer associations, which had alerted authorities to the risks of banned and potentially hazardous products being sold via the site.
Brussels singles out algorithms and influencers
In its ruling, the Commission said Temu had not done enough to identify and assess risks linked to illegal merchandise. Special criticism was reserved for the platform’s recommendation algorithms and its influencer partnership programmes, which, the EU says, may have actively facilitated the promotion of non-compliant products.
Henna Virkkunen, the EU’s tech chief, said the case was fundamentally about risk management — a cornerstone of the DSA’s regulatory framework. “This decision should serve as a serious warning not only to Temu but to all major digital platforms,” she said.
Temu rejects fine as disproportionate
Temu rejected the Commission’s findings, describing the fine as disproportionate. The company argued that the investigation was based on a preliminary DSA compliance assessment carried out in 2024 and does not reflect the current state of its safety mechanisms.
Temu also noted that it had co-operated with EU regulators throughout the process and has since introduced additional measures to improve its risk assessment systems, content moderation and user protection.
The company now has until August 28, 2026 to submit a detailed plan to remedy the violations. The European Commission will then evaluate the proposed measures and decide within two months whether the platform has met its obligations under the DSA.
The investigation into Temu remains ongoing. If Brussels determines that the company’s corrective actions are insufficient, further sanctions could follow.
