The Prague Post - EU fines Temu 200 mn euros over illegal products

EUR -
AED 4.114065
AFN 72.259582
ALL 90.790621
AMD 404.158249
ANG 2.004979
AOA 1027.255243
ARS 1706.277137
AUD 1.605841
AWG 2.019222
AZN 1.908846
BAM 1.955598
BBD 2.254667
BDT 138.445698
BGN 1.95798
BHD 0.422456
BIF 3355.553362
BMD 1.120234
BND 1.430852
BOB 13.181638
BRL 5.562192
BSD 1.119484
BTN 106.219027
BWP 15.421407
BYN 3.28696
BYR 21956.591821
BZD 2.251367
CAD 1.568609
CDF 2594.46299
CHF 0.92428
CLF 0.028078
CLP 1105.065844
CNY 7.480981
CNH 7.472639
COP 3552.732992
CRC 510.847228
CUC 1.120234
CUP 26.866225
CVE 110.25361
CZK 24.330933
DJF 199.339408
DKK 7.473811
DOP 68.662907
DZD 150.487454
EGP 61.701626
ERN 16.803514
ETB 182.080891
FJD 2.506193
FKP 0.837532
GBP 0.83759
GEL 2.901844
GGP 0.837532
GHS 12.979659
GIP 0.837532
GMD 82.897735
GNF 9906.976581
GTQ 8.557116
GYD 234.45578
HKD 8.78527
HNL 30.053895
HRK 7.537165
HTG 146.714844
HUF 366.731529
IDR 20269.350965
ILS 3.478944
IMP 0.837532
INR 106.361208
IQD 1697.024692
IRR 2052689.282929
ISK 136.422562
JEP 0.837532
JMD 177.661647
JOD 0.79429
JPY 175.72038
KES 145.354984
KGS 97.962924
KHR 4573.527541
KMF 492.347215
KPW 1008.210806
KRW 1482.658115
KWD 0.348046
KYD 0.932904
KZT 508.267495
LAK 25190.397759
LBP 100245.344367
LKR 371.711601
LRD 190.860284
LSL 18.546684
LTL 3.307761
LVL 0.677619
LYD 7.169259
MAD 10.995664
MDL 20.205913
MGA 5062.477032
MKD 61.598637
MMK 2352.70217
MNT 4032.758987
MOP 9.043866
MRU 44.738378
MUR 52.830672
MVR 17.319246
MWK 1941.099479
MXN 20.912986
MYR 4.576498
MZN 71.587148
NAD 18.546684
NGN 1492.219693
NIO 41.195744
NOK 10.482469
NPR 169.950444
NZD 1.961367
OMR 0.429016
PAB 1.119384
PEN 3.844503
PGK 5.013482
PHP 71.267107
PKR 309.775499
PLN 4.40251
PYG 6474.331183
QAR 4.080578
RON 5.3545
RSD 117.487863
RUB 91.430555
RWF 1653.929144
SAR 4.204519
SBD 9.045421
SCR 15.663382
SDG 673.825035
SEK 11.125947
SGD 1.430432
SHP 0.837151
SLE 25.709792
SLL 23490.757589
SOS 639.733914
SRD 42.176265
STD 23186.587781
STN 24.497469
SVC 9.794988
SYP 14565.285711
SZL 18.546084
THB 37.830725
TJS 10.315634
TMT 3.932022
TND 3.342755
TOP 2.697255
TRY 55.679905
TTD 7.606214
TWD 36.503734
TZS 2963.693842
UAH 50.679165
UGX 4931.490563
USD 1.120234
UYU 44.895362
UZS 13396.616091
VES 985.569686
VND 28949.654292
VUV 133.391269
WST 3.100456
XAF 655.957
XAG 0.020782
XAU 0.000280356799
XCD 3.02749
XCG 2.017492
XDR 0.792064
XOF 655.957
XPF 119.331742
YER 264.491333
ZAR 18.566461
ZMK 10083.456786
ZMW 22.506675
ZWL 360.71498
SSP 6436.51929
MXV 2.360302
  • RELX

    -0.0800

    40.54

    -0.2%

  • BCC

    -0.5500

    77.74

    -0.71%

  • BTI

    -0.9900

    59.48

    -1.66%

  • BCE

    -0.4100

    20.4

    -2.01%

  • RIO

    -0.7200

    83.42

    -0.86%

  • GSK

    -0.4600

    50.75

    -0.91%

  • RBGPF

    2.6200

    72.77

    +3.6%

  • CMSC

    0.0000

    19.6

    0%

  • NGG

    -0.7800

    81.86

    -0.95%

  • CMSD

    0.1800

    19.78

    +0.91%

  • VOD

    -0.3800

    15.74

    -2.41%

  • BP

    1.2700

    51.32

    +2.47%

  • AZN

    -1.0800

    171.49

    -0.63%

  • JRI

    0.0700

    10.75

    +0.65%

  • RYCEF

    -1.7500

    15.26

    -11.47%

EU fines Temu 200 mn euros over illegal products
EU fines Temu 200 mn euros over illegal products / Photo: Nicolas TUCAT - AFP/File

EU fines Temu 200 mn euros over illegal products

The EU slapped a 200-million-euro ($232 million) fine on Chinese-owned online retailer Temu on Thursday for allowing the sale of illegal products, including dangerous baby toys and defective chargers.

Text size:

"The company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union," the EU said.

According to EU regulators, European consumers are "very likely to encounter illegal items" on Temu, and the company "seriously underestimated how often EU consumers are likely to" see such products.

Temu is extremely popular in the European Union, with 130 million users after entering the bloc's market in 2023.

But it has come under fierce scrutiny since October 2024 when the EU opened its investigation, which preliminarily found in July last year that Temu had breached landmark rules over the risks of illegal products.

"Temu is a very big player in the European market," EU tech commissioner Henna Virkkunen told reporters, adding that its size meant that a "very big part" of EU consumers get their hands on such illegal products.

Thursday's fine is only the second imposed under the EU's powerful Digital Services Act (DSA) on content, after Elon Musk's X platform received a 120-million-euro fine in December.

Under the DSA, the world's most popular digital platforms including social media apps and online retailers must conduct a risk assessment to understand what dangers they pose and how to tackle the risks.

The EU slammed Temu for its 2024 risk assessment that it said "falls short of the standards", citing the discovery of baby toys, such as rattles, containing chemicals that exceeded legal safety limits, and chargers that failed basic safety tests. It also pointed to jewellery.

The European Commission said Temu failed to properly assess the platform's design and how it "could amplify dissemination risks of illegal products".

- EU focus on China -

The DSA is part of the EU's bolstered legal armoury to curb what the bloc considers excesses by Big Tech, and fines can go as high as six percent of a company's total worldwide annual turnover.

Temu's revenues were $61.7 billion last year.

While the EU could have hit Temu with a higher fine, a European Commission official said the amount was proportionate to the breach since it concerned a risk assessment for one year where the conclusions were "clear-cut".

Temu must now pay the fine and present a plan to the EU by August 28 that includes what action it will take to address the breaches.

If Temu does not comply, it faces periodic penalty payments.

It can also appeal the fine, as Musk has already done in the EU courts.

The EU continues to investigate other suspected breaches in the same probe including the use of addictive design features that could hurt users' physical and mental well-being, and how Temu's systems recommend content and products.

The fine comes a day before the EU executive is set to debate how the 27-nation bloc should approach China to level the playing field, with top EU officials warning that Europe must get tougher on China to defend its economy.

Brussels has already stepped up its anti-subsidy investigations into Chinese companies investing in Europe, and on Thursday it opened an in-depth probe into Chinese e-commerce giant JD.com's bid for Ceconomy, a major German electronics retail group, on suspicion it was boosted by state subsidies.

G.Turek--TPP