Chinese online retailer Temu has been fined €200 million ($232 million) for failing to do enough to stop the sale of illegal products, European Union tech regulators said on Thursday, following the first part of a wide investigation.
Further penalties could follow in the coming months as a result of a nearly two-year investigation under the Digital Services Act (DSA) that requires large online companies to tackle illegal and harmful content.
The European Commission said the company failed to diligently identify, analyze, and assess the systemic risks of illegal products sold on its platform and the resulting harm to consumers in the EU.
Temu said in a statement: "We disagree with the European Commission’s decision and consider the fine to be disproportionate." The company added that it was considering all its options on the matter.
EU tech chief Henna Virkkunen told reporters: "This is about risk management. It is very much a cornerstone of our DSA."
