The European Commission has formally accused Chinese e-commerce giant Temu of breaching the European Union’s Digital Services Act (DSA), citing failures to prevent the sale of illegal and non-compliant products on its platform. The allegations come amid the bloc’s broader efforts to tighten regulation of online marketplaces and curb the influx of unsafe goods from outside the EU, particularly from China.
Preliminary Findings: High Risk to Consumers
In a statement released Monday, the Commission reported that an ongoing investigation into Temu had identified a “high risk” that EU consumers could encounter illegal or dangerous products while using the site. The inquiry included a mystery shopping exercise, during which officials found items such as baby toys and small electronics being sold in violation of EU safety standards.
Temu was asked last year to submit information outlining how it mitigates risks associated with the sale of illegal goods and protects consumer health and safety. However, the Commission found the company’s risk assessment to be inadequate, relying on broad industry standards instead of specific data about Temu’s platform. As a result, the Commission stated, mitigation measures may have been ineffective in stopping the spread of banned or non-compliant items.
Regulatory Pressure Mounts Under the DSA
The findings are part of the Commission’s enforcement of the Digital Services Act, a sweeping regulatory framework aimed at increasing accountability for large online platforms operating within the EU. The DSA requires digital marketplaces to actively monitor and remove illegal products, improve consumer protection, and ensure transparency in algorithmic systems.
A Commission official emphasized the significance of the case, saying, “Temu is a priority for us. The problems caused on the European market by non-compliant products coming from online marketplaces are an issue.”
Part of a Wider Crackdown on Chinese Platforms
Temu is not the only Chinese platform facing scrutiny. In recent months:
- AliExpress was also accused of failing to prevent the spread of counterfeit and unsafe products.
- Shein became the subject of a separate EU probe over consumer protection and transparency concerns.
Additionally, the EU plans to introduce a €2 flat fee on billions of low-cost packages entering the bloc — a move widely seen as targeting platforms like Temu and Shein, whose success relies heavily on mass shipments of inexpensive goods.
Potential Penalties and Next Steps
Temu now has several weeks to respond to the Commission’s preliminary findings. If found in violation of the DSA, the platform could face fines of up to 6% of its global annual revenue.
Beyond illegal product listings, the EU’s investigation into Temu also includes scrutiny of:
- “Addictive design” features that may manipulate user behavior.
- Product recommendation algorithms that may lack transparency.
- Access and use of consumer data on the platform.
In a brief statement, Temu said it would “continue to co-operate fully with the commission.”
Conclusion: A Defining Moment for Digital Regulation
The Temu case underscores the EU’s commitment to asserting regulatory control over global digital platforms, particularly as consumer safety and fair competition face growing threats in the digital age. The outcome of the investigation could set an important precedent for how non-EU companies operate within the single market, and how far Brussels is willing to go to protect consumers and uphold its digital sovereignty.
