The European Union has accused Chinese e-commerce platform, Temu, of repeatedly selling illegal and non-compliant products across member states, warning the company of potential sanctions that could amount to 6% of its global annual revenue.
The development was confirmed on Monday, July 28, 2025, after the European Commission formally placed Temu under investigation for failing to adequately protect European consumers under the Digital Services Act (DSA). Authorities allege that the platform violated multiple safety standards by allowing dangerous and counterfeit items to be sold on its marketplace without proper oversight or product traceability.
According to EU officials, the complaint stems from over 30 product categories flagged in recent months, ranging from electronics to children’s toys, many of which reportedly lacked CE certification or posed potential hazards to consumers.
Temu, owned by Chinese tech giant PDD Holdings, risks stiff financial penalties if found guilty of breaching DSA rules, which mandate stronger accountability from online platforms operating in the EU. Under the law, violators can face fines of up to 6% of their global turnover, potentially amounting to billions of dollars for Temu.
In response, the company said it is cooperating with regulators and working to enhance its safety protocols, while reiterating its commitment to consumer protection and legal compliance across all markets.
This marks one of the most high-profile enforcement actions under the EU’s recently enacted digital regulations, signaling a tougher stance on foreign tech platforms that fail to meet the bloc’s stringent standards.
