Brussels (Brussels Morning Newspaper) October 26, 2026 – The European Commission has formally accepted a comprehensive compliance action plan submitted by Chinese e-commerce retailer Temu to resolve safety violations under the Digital Services Act. The regulatory acceptance follows a €200 million fine levied against the online platform in May for failing to prevent the listing of illegal and unsafe consumer products. Under the newly approved framework, Temu has committed to systematic risk analyses, enhanced screening of listed items, and structural revisions to its product recommendation algorithms across all European Union member states.
The European Commission confirmed that the accepted action plan details specific remedies Temu will implement to address structural vulnerabilities identified during regulatory reviews. Under the terms of the agreement, the platform is required to continuously monitor and prevent the listing and sale of non-compliant goods, while scaling up enforcement measures should further compliance failures emerge. Additionally, the Chinese retail platform must conduct comprehensive reviews of its automated recommender systems to ensure that algorithmic features do not amplify or promote illegal goods to European shoppers.
Regulatory scrutinisation of the company intensified following a formal investigation initiated by the European Commission in October 2024. That inquiry assessed whether Temu was fulfilling its statutory obligations as a designated Very Large Online Platform (VLOP) under the terms of the Digital Services Act (DSA). The investigation concluded that the platform had failed to adequately identify, manage, and mitigate systemic risks associated with the distribution of dangerous consumer items to European users, specifically highlighting instances of faulty electronic chargers and non-compliant infant toys.
The enforcement action reached a primary milestone in May when European regulators penalised Temu with a fine amounting to €200 million due to persistent violations. The platform currently registers an estimated 130 million active users across the 27 member states of the European Union, representing approximately one-third of the total population of the bloc. This expanded user footprint establishes Temu as one of the largest digital retail platforms operating within the European internal market.
Following the announcement of the regulatory decision, Temu issued an official statement acknowledging the European Commission’s formal acceptance of its submitted compliance strategy. “We appreciate the Commission’s constructive engagement with us throughout the process,” the company stated, adding that the approved plan “stands as a clear testament to Temu’s commitment to investing in robust compliance infrastructure to ensure a safe, trustworthy shopping environment for all EU users.”
Regulatory Framework and Digital Services Act Provisions
The regulatory measures enforced against Temu fall directly under the governance of the European Union’s Digital Services Act. Under this statutory framework, digital platforms that cross the threshold of 45 million monthly active users within the European Union are classified as Very Large Online Platforms. This designation subjects the entities to stringent oversight rules, including mandatory annual risk assessments, algorithmic auditing, transparent content moderation policies, and rapid removal protocols for illicit products or illegal content.
Investigators from the European Commission found that Temu’s initial operational safeguards were insufficient to address the volume of unverified goods entering the single market. The audit identified specific deficiencies in seller verification processes and automated oversight tools, which permitted third-party vendors to list items that failed to meet mandatory European safety certification standards.
Under the provisions of the newly accepted action plan, Temu is mandated to implement technical solutions designed to block non-compliant vendors and automate the removal of flagged products. The plan specifies that Temu must submit regular compliance reports to European regulators, detailing the volume of removed listings, seller suspensions, and algorithmic adjustments made to mitigate safety risks.
Trade Policy Changes and Low-Value Import Regulations
The regulatory enforcement under the Digital Services Act coincides with broader structural changes in the European Union’s cross-border trade policy. Since July, e-commerce platforms operating within the bloc have been subject to a new regulatory fee of €3 imposed on low-value parcels entering member states.
Prior to the introduction of these measures, consignments valued at less than €150 entered the European Union exempt from standard customs duties. The policy alteration was designed to standardise market conditions, address administrative burdens, and ensure uniform compliance across cross-border digital sales channels.
Following the implementation of the new packaging fees and associated administrative requirements, overall volumes of low-value imports entering the European Union—specifically shipments originating from Chinese manufacturing hubs—experienced a measurable decline. Regulatory data indicates that import volumes in this specific consumer category contracted by 30% to 40% across the bloc following the enforcement of the new fees.
Implementation Timeline and Future Oversight
The approval of the action plan places Temu under continuous supervision by both national competent authorities and the European Commission’s dedicated digital services oversight division. The company will be required to demonstrate the ongoing efficacy of its risk management systems through independent third-party audits and formal reporting cycles.
Failure to adhere to the commitments outlined within the approved action plan or further non-compliance with the Digital Services Act could expose the platform to additional enforcement procedures. Under the statutory terms of the DSA, continued non-compliance by designated Very Large Online Platforms can result in financial penalties reaching up to 6% of an entity’s global annual turnover.
The European Commission confirmed that it will monitor the practical application of Temu’s commitments in real time, assessing whether the technical modifications to recommender systems and inventory controls successfully eliminate unsafe goods from the platform.
