The ax has fallen for the popular Chinese online sales platform. The European Commission has formalized a sanction of 200 million euros against the marketplace. This decision follows an in-depth investigation which revealed systemic flaws in the protection of European consumers from the sale of non-compliant goods. The measure is part of the Digital Services Act (DSA)the new European regulation aimed at making companies responsible digital giants.
What are the specific criticisms made by the Commission?
At the heart of the accusation is Temu’s failure to identify and assess the systemic risks linked to the presence of illegal products on its marketplace. European regulators believe that consumers are “ very likely to come across illegal items » while browsing the site, which is considered a violation grave DSA obligations.
To support its conclusions, the Commission carried out mystery shopping operations the results of which are alarming. A very high percentage of electronic device chargers purchased have not passed the basic security testing. Likewise, many baby toys had choking hazards or contained chemicals exceeding legal thresholds permitted in the EU.
How did Temu react to this sanction?
The reaction of the parent company, PDD Holdings Inc., was not long in coming. In a statement, Temu expressed his disagreement with the Commission’s decision, calling thefine of ” disproportionate “. The company maintains that the assessment dates from 2024 and does not reflect the improvements made since to its user control and protection systems.
The company claims to have cooperated constructively throughout the investigation and have already taken steps to strengthen the risk assessment and governance of its platform. Despite this defense, the sanction is maintained and the company, which counts 92 million users in the EU, is now under pressure to prove its good faith.
What are the next steps for the platform?
The platform Ago has little time to comply. The European Commission has given it until August 26 to submit a detailed action plan aimed at correct the shortcomings observed. This plan will have to convince regulators of its ability to prevent the sale of dangerous products in the future.
In the event of persistent non-compliance, the company is exposed to additional penaltieswhich could take the form of daily penalties. This case is not isolated: its direct competitor, Sheinis also the subject of a similar investigation, particularly after problematic products were discovered on its platform last year.
