Temu Says European Commission Fine is Disproportionate

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The online marketplace says the decision does not reflect the current state of its systems and procedures.

 

Temu has rejected a €200 million fine imposed by the European Commission under the Digital Services Act, saying the penalty is disproportionate and does not reflect the company’s current practices.

The Commission announced the fine on Thursday, saying Temu had failed to properly identify, analyse and assess systemic risks linked to illegal products offered on its platform and the potential harm to consumers in the European Union.

In a statement to Politis, a company spokesperson said Temu respects the objectives of the Digital Services Act and recognises the need for clear rules across the digital economy, but disagrees with the Commission’s decision.

“The decision concerns the first assessment of the platform under the DSA in 2024 and does not reflect the current state of the company’s systems and procedures,” the spokesperson said.

Temu said it had cooperated constructively with the European Commission throughout the process and had since taken additional measures to strengthen risk assessment, platform governance and user protection.

The company said it would continue working with relevant regulators to help shape a responsible online marketplace for consumers, businesses and local communities.

Temu is now reviewing the decision and assessing all available options.