The European Union is once again taking aim at ultra-fast fashion. This time, it’s Temu—the low-cost e-commerce platform and major rival to Shein—that’s in the crosshairs: the European Commission has fined it €200 million for selling illegal products on its platform. The Chinese company, classified in 2024 as a Very Large Online Platform (VLOP), is subject to the strictest requirements of the Digital Services Act (DSA), the European legislation that has been fully operational since 2024 and requires systemic risk assessments, algorithm transparency, and effective systems to combat illegal products.
Dangerous products and risky promotion
According to Brussels, Temu failed to properly assess the quality of the products offered. Among numerous examples, several chargers failed basic safety tests, and various children’s toys posed choking hazards or contained chemicals exceeding legal limits. The product promotion system, particularly through influencers, amplified the risk of non-compliant items being distributed.
A record fine under the DSA
The penalty was calculated at approximately 0.25% of Temu’s 2025 revenue (which amounts to €79.5 billion), far below the 6% cap set by the DSA. A European official noted that “this amount may be ‘peanuts,’ but paying it is still more expensive than complying with the DSA’s obligations.” This is indeed the highest fine imposed to date under this regulation and the second non-compliance decision in this context, following the €120 million fine imposed on X, Elon Musk’s social media platform, in December 2025.
A corrective action plan required by the end of August
Unsurprisingly, Temu has expressed its disagreement with this sanction, reaffirming its commitment to the DSA’s objectives while describing the Commission’s decision as “disproportionate.” The company now has until August 28 to submit a corrective action plan, which Brussels will then have two months to evaluate. If approved, the deadlines and implementation procedures will be defined; if not, additional periodic penalty payments will be imposed.
Shein Also in the European Union’s Crosshairs
Temu is certainly not the only ultra-low-cost group in the EU’s crosshairs. On February 17, 2026, formal proceedings were initiated against Shein, which is accused of designing an addictive platform, a lack of transparency in its recommendation systems, and the sale of illegal products, including child pornography. The company faces fines of up to 6% of its annual global revenue, in accordance with the provisions of the DSA.