CHINESE online retailer Temu has been fined 200 million euros ($232m) for not doing enough to stop the sale of illegal products, European Union tech regulators said yesterday, following the first part of a wide investigation.
Further penalties could follow in the coming months as a result of a nearly two-year investigation under the Digital Services Act that requires large online companies to do more to tackle illegal and harmful content on their platforms.
EU regulators investigated Temu following complaints by pan-European consumers’ organisation BEUC and 17 of its national members.
The European Commission, the EU executive, said the company failed to diligently identify, analyse, and assess the systemic risks of illegal products sold on its platform and the resulting harm to consumers in the EU.
It criticised Temu for not properly assessing how its recommender systems and product promotion programmes by affiliated influencers could amplify the risks of sales of illegal products.
“Temu respects the objectives of the Digital Services Act and the need for clear, consistent rules across the digital economy. However, we disagree with the European Commission’s decision and consider the fine to be disproportionate,” said Temu in a statement.
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