EU Regulator Fines Chinese Online Platform Temu €200 Million

The European Union's regulator has fined the Chinese online platform Temu €200 million. According to the European Commission's assessment, the company failed to take sufficient measures to stop the distribution of illegal products on the platform.

The decision followed nearly two years of investigation. According to the European Commission, Temu failed to assess the risks that posed problems for users and thereby violated the requirements of the "Digital Services Act."

The investigation was initiated based on a complaint by BEUC, an alliance of consumer organizations. According to regulators' assessment, Temu's recommendation system and advertising programs associated with influencers facilitated the distribution of products that did not comply with EU regulations.

The company disagrees with the decision; however, Temu states that it has already strengthened the security mechanisms on the platform.

The European Commission has given the company until August 28 to submit a new action plan. Following this, regulators will make a final decision.

This is one of the most significant sanctions that the EU has imposed under the "Digital Services Act." Last year, X was fined €120 million for similar violations of the rules.

Source: Investing.com