The European Union has fined Chinese-owned online retailer Temu €200m ($232m; £173m) for allowing illegal products to be sold on its platform.
The European Commission said the company had “failed to diligently identify, analyse and assess the systemic risks” of the products and the harm they could cause to consumers.
Products identified in the case included dangerous baby toys and faulty chargers, which were found to pose serious risks to consumers across the bloc.
Temu has been under investigation since October 2024 over whether it has been meeting its obligations as a designated Very Large Online Platform under EU law.
The investigation involved a mystery shopping exercise carried out by an independent testing organisation, which found that a high percentage of chargers purchased through Temu failed basic electrical safety tests.
The same exercise found that a high proportion of baby toys posed safety risks, containing chemicals above legal limits or featuring small detachable parts that presented suffocation hazards.
As well as paying the fine, Temu has been required to present an action plan addressing the failures by 28 August, with the Commission then having two months to assess compliance.
EU tech commissioner Henna Virkkunen told reporters that the decision was intended to send a “very strong message” to Temu.
A Temu spokesperson said the decision related to 2024 and did not reflect the current state of its systems, adding that the retailer respected the need for clear, consistent rules.
“We disagree with the European Commission’s decision and consider the fine to be disproportionate,” the spokesperson said.
“We are reviewing the decision carefully and considering all available options,” the statement continued, signalling the company may challenge the ruling.
The fine is only the second imposed under the EU’s Digital Services Act for content, with the first being a €120m penalty against Elon Musk’s X social media network last December.