The key facts

  • The European Commission has officially accepted Temu's action plan for compliance with the Digital Services Act (DSA)
  • The €200 million fine was imposed in May 2026 for the sale of dangerous children's toys and faulty chargers
  • Temu has 130 million users in the EU — nearly a third of the bloc's population; new €3 fees on cheap parcels since July have cut imports by 30–40%

The Commission approved Temu's action plan

The European Commission announced that it has approved the action plan of the Chinese marketplace Temu aimed at remedying violations of the EU Digital Services Act (DSA). Under the plan, the company pledges to conduct a risk assessment, monitor the measures preventing the sale of illegal goods on the platform, and strengthen them where necessary. Temu will also review how its recommender systems 'may amplify the spread of illegal goods,' according to the Commission's statement (euronews).

From fine to compliance

The approval of the plan is a continuation of a long-running dispute: in May 2026, the EU fined Temu €200 million for allowing the sale of illegal goods, including dangerous children's toys and faulty chargers. The fine was preceded by a formal investigation launched in October 2024, which examined whether Temu was fulfilling the obligations of a platform designated as a 'very large online platform' under the DSA. The Commission's inspectors concluded at the time that the platform was not identifying or addressing the risks posed by illegal and unsafe goods to European consumers.

What this means for the market

Temu welcomed the regulator's decision: the company said it values its 'constructive engagement' with the Commission and called the plan 'clear evidence' of its investment in compliance infrastructure to create a safe environment for EU users. The company's scale is nonetheless large: it has 130 million users across the 27 EU countries — nearly a third of the bloc's population — making it one of Europe's largest online retailers. New rules have also put additional pressure on the business: since July, Temu, like other platforms, has been applying a €3 fee on low-value parcels (previously goods under €150 entered the EU duty-free). According to euronews, since the rules came into force, imports — especially from China — have fallen by 30–40% — meaning the approval of Temu's plan comes against the backdrop of an already noticeable decline in the flow of cheap parcels into Europe.