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Temu and a €200 Million Blow

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The European Union has imposed a €200 million fine on Chinese e-commerce platform Temu following a large-scale investigation that lasted 19 months. Regulators stated that inspections uncovered products on the platform posing potential risks to consumers, including children’s toys, chargers, clothing, and jewelry.

The investigation was conducted as part of increased oversight of major online platforms under the Digital Services Act. Authorities used a “mystery shopper” mechanism during the probe, which helped identify systemic issues in the product listings. According to European regulators, a significant portion of the inspected children’s products contained elevated levels of chemical substances considered potentially harmful to health.

Particular concern was raised over children’s toys containing small detachable parts that could pose choking or injury risks for young children. Regulators also highlighted a large number of chargers that failed to meet basic safety requirements and had not passed the necessary certification tests.

According to the European Commission, the violations were systemic in nature and pointed to insufficient quality control over goods sold on the platform by third-party vendors. Under the Digital Services Act, large digital platforms are required to assess risks associated with their services and take measures to mitigate them. Otherwise, they can be held responsible for consequences affecting consumers within the EU.

The size of the fine was calculated based on the nature of the violations, their severity and duration, as well as the potential harm to users across the European Union. Regulators emphasized that penalties for such violations can reach up to 6% of a company’s global annual turnover.

Following the ruling, Temu must submit a corrective action plan by August 28, 2026. The document must outline concrete steps to eliminate the identified violations and strengthen product safety controls on the platform. The European Board for Digital Services will review the proposed plan within one month, after which the European Commission will issue a final decision and establish implementation deadlines. Failure to comply may result in recurring financial penalties.

At the same time, criticism regarding the platform’s digital security practices continues to grow. According to analysts from the Center for Strategic and International Studies, the Temu app raises concerns not only in the context of commerce, but also regarding the processing of users’ personal data.

Experts note that the platform may potentially collect large amounts of user information, including data that could go beyond what is necessary for the operation of an e-commerce service. Analysts also point out that under Chinese law, companies may be required to cooperate with government authorities, further intensifying concerns about data privacy.

Additional criticism came from research firm Grizzly Research, which described Temu as one of the most controversial mass-market applications currently in widespread use. Analysts suggest that the platform’s functionality may include elements of expanded data collection not always directly related to the shopping process.

As a result, the situation surrounding Temu is developing along two parallel tracks: on one side, strict regulation by the European Union over product safety concerns, and on the other, growing debate about digital security and the protection of user data.

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