European Union: European Commission preliminarily found that Temu breached its obligations under Digital Services Act

On 28 July 2025, the European Commission (EC) preliminarily found that Temu breached its obligations under the Digital Services Act (DSA), particularly Article 34, by failing to properly assess and mitigate systemic risks linked to the dissemination of illegal products on its platform. The EC’s findings were based on evidence, including a mystery shopping exercise indicating a high likelihood of non-compliant products, including electronics, being accessible to consumers in the European Union (EU). The EC concluded that Temu’s October 2024 risk assessment relied on general industry data instead of marketplace-specific information, potentially leading to inadequate mitigation strategies. The preliminary findings also form part of a broader investigation launched on 31 October 2024, encompassing additional suspected infringements, including the use of addictive interface design, recommendation system transparency, and data access for researchers. If confirmed, the EC may adopt a non-compliance decision with sanctions including fines up to 6% of Temu’s total worldwide annual turnover and enhanced supervision obligations. The investigation is coordinated with national Digital Services Coordinators, customs and market surveillance authorities, and aligns with parallel actions by the Consumer Protection Cooperation (CPC) Network and product safety enforcement initiatives.