The European Commission has imposed a €200 million (approximately $232 million) fine on Chinese e-commerce platform Temu, citing failures to prevent illegal and unsafe products from being sold on its marketplace. The penalty is one of the largest levied against a Chinese cross-border e-commerce company in the EU.

EU consumer protection authorities identified widespread issues including uncertified electronics, hazardous toys, and products potentially containing harmful substances. Under the Digital Services Act (DSA), large online platforms operating in the EU are legally required to conduct due diligence on goods sold through their marketplaces.

“We cannot tolerate a platform that earns significant profits in the EU while offloading safety risks onto European consumers,” a European Commissioner stated. “This €200 million fine is not the goal — it is about compelling the platform to fulfill its legal responsibilities.”

Temu responded that it is actively cooperating with EU regulators and has implemented multiple measures to strengthen its product review processes, including expanding its compliance team, deploying AI-driven product screening systems, and partnering with third-party testing organizations.

Industry analysts view the fine as a signal that regulatory scrutiny of cross-border e-commerce is intensifying. Since the full enforcement of the Digital Services Act last year, the EU has launched investigations into several major online platforms, with Temu among the most closely watched targets.

For China’s cross-border e-commerce industry, this event sends a clear message: compliance costs are rising rapidly, and platforms operating in Western markets must invest more resources in product screening, consumer protection, and data security.

EU regulators have disclosed that Meta has repeatedly failed to provide detailed information about user ban decisions on Facebook and Instagram, marking the third time this year the company has been cited for non-cooperation under the Digital Services Act (DSA).

The EU’s Digital Services Coordinator Network (DSC Network) stated that Meta did not comply with DSA Article 24 requirements to share data on banned accounts within mandated timeframes. This data includes the number of banned accounts, ban reason categories, and appeal outcomes.

EU authorities emphasized that large online platforms are legally obligated to provide transparent content moderation data to regulators, ensuring community rule enforcement does not exhibit systemic bias or discrimination. Meta’s continued non-cooperation could face further penalties — DSA violations can result in fines of up to 6% of global annual revenue.

Meta responded that it is engaged in constructive dialogue with EU regulators but cited user privacy laws as limiting certain data-sharing capabilities. The company says it is developing a new reporting system to better balance transparency with privacy protection.

Analysts note the dispute reflects a broader platform governance challenge: the EU seeks to establish robust digital market oversight through the DSA, while tech giants face inherent tensions between data transparency and user privacy.

Meta has already faced multiple DSA-related penalties in the EU. Cumulative fines could exceed €500 million if this investigation leads to further sanctions.