Brussels approves Temu’s action plan

The European Commission has approved an action plan submitted by Temu to combat the spread of illegal products. The Chinese platform has committed to implementing five corrective measures. The fine previously imposed on Temu remains in place.

In May, Temu was fined 200 million euros by the European Commission for violating the Digital Services Act (DSA). The platform, owned by China’s PDD Holdings, had allegedly failed to adequately investigate and assess the risks associated with illegal products on its marketplace. According to the European Commission, Temu underestimated the likelihood of European consumers encountering unsafe products and failed to sufficiently consider the role of its own recommendation algorithms.

Five corrective measures

To avoid further fines, Temu submitted an action plan in August, which has now been approved by the European Commission. The platform has committed to implementing five corrective measures. These are intended to help Temu better identify and address the risks associated with illegal products on its platform.

Recommendation algorithms under scrutiny

Temu must conduct a platform-specific risk assessment, measure the effectiveness of its measures against illegal products, and investigate shortcomings in its product controls and content moderation systems. In addition, the company must examine how its recommendation algorithms could amplify the spread of illegal products and investigate how sellers might manipulate the platform to offer such items.

Audit report

Temu has four months to implement the measures, after which an independent audit will assess their implementation. The company must submit the audit report to the European Commission within another four months. Temu welcomed the Commission’s decision, stating that its risk assessment methodology has improved significantly since it first became subject to the DSA’s stricter obligations in 2024.

Temu in Europe

Within just a few years, Temu has established a strong position in Europe. The platform has broken into the top 10 online retailers in almost every country. In four European countries, the platform owned by China’s PDD Holdings even ranks first, according to ECDB. The ecommerce data provider also recently calculated that nine out of every ten euros spent online outside the European Union in 2025 went to Temu, Shein and AliExpress.

EU import charges

To curb the influx of parcels from China and improve product safety checks, the European Union has introduced several measures and new charges. As of July 1 this year, a flat import fee of 3 euros per product category in a package has been in effect. This flat fee will be replaced by standard customs duties from July 2028.

In addition to an import fee, a handling fee now applies

As of this month, a separate handling fee of 2 euros per declaration line has also been introduced. An additional surveillance fee to facilitate better product inspections may follow. In response to these measures, Temu has started using European warehouses, brought local selling partners on board and invested in a European delivery network.