Europe fines Temu 200 million: 'Risks for consumer safety'

BRUSSELS - The European Commission announced today, Thursday 28 May, that it has imposed a fine of EUR 200 million on the Chinese company Temu, accused of violating the rules of the Digital Services Act (DSA). In particular, the Chinese company allegedly failed to diligently assess the quality of products offered online. According to the data held by Brussels, it is highly likely for European users of Temu to come across illegal items.

Under indictment are the rules that the Chinese platform has given itself in managing its online offer. The risk analysis, the European Commission explains in a communiqué published here in Brussels, is carried out on the basis of general guidelines, relating to e-commerce rather than to Temu's specific offer. Moreover, the Chinese company itself has a promotion and marketing system that in fact multiplies the risks of dissemination of illegal products.

"The results of a survey," adds the EU executive, "show that a very high percentage of the selected battery chargers failed basic safety tests, while a high percentage of the children's toys tested presented safety risks of medium to high severity, as they contained chemicals that exceeded legal safety limits or posed choking hazards due to the presence of detachable parts.

Temu has until 28 August to submit an action plan to correct its actions. Once this plan is accepted by Brussels, the company will have 'a reasonable period' to put it into practice. Otherwise it will be called upon to pay periodic fines. The EU initiative comes after several consumer associations in various European countries have recently expressed concern about the online presence of illegal products. Criticised in addition to Temu are also the platforms Shein and AliExpress.

In a statement, Temu said it complied with the objectives of the Digital Services Act. "We do not agree with the decision of the European Commission and believe that the sanction is disproportionate (...) Temu has cooperated constructively with the Commission throughout the process and has since taken further steps to strengthen the risk assessment (...) We will continue to cooperate in good faith with the competent authorities."

The College of Commissioners will hold a meeting on Friday 29 May all about the future relationship with China in a context of growing concern about Chinese competition, especially in the industrial field. There is a fear of witnessing a deindustrialisation of Europe. Some countries, including France and Italia, are calling for more trade protectionism. Still others are wavering, although the concerns, as mentioned, are palpable.

(This article was updated at 17:05 on Thursday 28 May)