EU Fines Temu €200 Million Under DSA for Illegal and Unsafe Product Listings

The European Commission issued only the second-ever non-compliance fine under the Digital Services Act (DSA) on May 28: a €200 million penalty against Temu (operated by China's PDD Holdings) for failing to identify and assess systemic risks from illegal and unsafe products on its marketplace. The Commission found that Temu's platform hosted products including faulty chargers and unsafe children's toys that posed safety risks to EU consumers, and that Temu had failed to implement sufficient risk mitigation measures as required under the DSA for Very Large Online Platforms (VLOPs). Temu has until August 28, 2026 to submit a detailed action plan. The fine nearly doubles the first-ever DSA fine of €120 million levied against X/Twitter in December 2025. The Commission noted Temu's rapid growth to over 45 million EU monthly active users has outpaced its safety compliance infrastructure.