EU Backs Temu Action Plan After €200 Million Digital Services Act Fine

The European Commission said on Monday, 26 October 2026, that it had backed Temu’s action plan after fining the online retailer €200 million under the Digital Services Act (DSA) in May. The plan covers illegal products sold through the platform and a review of how its recommender systems “may amplify the spread of illegal goods”.

Temu welcomed the approval of its action plan and thanked the Commission for its “constructive engagement,” according to The Edge Malaysia. Euronews, citing AFP, reports that the Commission accepted the plan, while RetailDetail describes it as provisionally approved.

The May Fine and the Commission’s Findings

On 28 May 2026, the Commission fined Temu €200 million for failing to address the systemic risks of illegal products being offered on its platform, The Irish Times reports. It is the second fine under the Digital Services Act, after a €120 million fine against X in December 2025, and Slaughter and May describes it as the largest so far.

Euronews reports that a formal investigation began in October 2024 into whether Temu met its obligations as a designated Very Large Online Platform under the DSA. Under those obligations, very large platforms must assess systemic risks at least once a year and take measures to reduce them, according to Slaughter and May’s summary of the decision.

The Commission found that Temu did not adequately assess how its service design, including recommender systems and influencer-led product promotion, could amplify the spread of illegal products, according to Slaughter and May. That 2024 risk assessment relied on generic information about the e-commerce sector rather than evidence specific to Temu, the same source reports. The Commission also suggested Temu underestimated how often EU consumers were likely to encounter illegal items. Euronews describes the products at issue as including dangerous baby toys and faulty chargers.

Temu disagreed with the decision and called the fine disproportionate, The Irish Times reports. The company said the decision relates to its first DSA risk assessment, from 2024, and does not reflect its current systems. It said it had since strengthened risk assessment, platform governance and user protection.

The May Fine
The Commission fined Temu €200 million on 28 May 2026 under the Digital Services Act for failing to address the systemic risks of illegal products on its platform, according to The Irish Times.

What the Action Plan Commits Temu To

According to Euronews, the plan includes a risk analysis of illegal products and monitoring of the measures meant to prevent their sale. Temu has also promised to step up its efforts if needed.

The Commission said Temu will examine how its recommender systems “may amplify the spread of illegal goods,” according to The Edge Malaysia. Euronews reports the same review. The plan puts Temu’s recommender systems under review.

RetailDetail reports that the plan also includes an investigation into how sellers exploit Temu’s features to highlight potentially illegal products. It reports that Temu has four months to implement the changes.

Temu said the plan reflects its commitment to investing in compliance infrastructure for a safe shopping environment, according to The Edge Malaysia and Euronews.

What It Means for Sellers and Shoppers

For sellers, the plan adds scrutiny of how platform features are used to promote products, including whether any are used to highlight potentially illegal items, according to RetailDetail.

Euronews reports that Temu has about 130 million users across the EU’s 27 member states, nearly a third of the bloc’s population. Slaughter and May says the Commission’s May findings covered its recommender systems and influencer-led product promotion.

The Irish Times reported in May that the EU would apply a flat customs duty of €3 per item on e-commerce parcels valued under €150 from July. Euronews reports that the fee has been in effect since July and that Temu is among the platforms affected. Before that, packages worth less than €150 entered the bloc duty free, Euronews reports.

The plan puts Temu’s recommender systems under review.

Open Points and Next Steps

Slaughter and May reports that Temu had until 28 August 2026 to submit an action plan. The European Board for Digital Services would then have one month to issue an opinion, and the Commission would decide whether the plan is sufficient. The Irish Times gives the deadline as the end of August 2026.

RetailDetail reports four months for Temu to implement the changes. Slaughter and May says the Commission sets that period itself once it finds the plan sufficient, and that non-compliance may lead to periodic penalty payments.

Slaughter and May reports that Temu may explore an appeal to the General Court of the EU, as X has done with its fine. The Irish Times reported in May that Temu was reviewing the decision and considering all available options.

The Irish Times also reports a separate EU investigation examining whether Temu has actually sold illegal goods, such as toys or electrical devices that fail to meet the EU’s safety standards, rather than only failing to prevent the risk.