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EU accepts Temu plan to remedy Digital Services Act breach - Finance news and analysis from Global Banking & Finance Review
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EU accepts Temu plan to remedy Digital Services Act breach

Published by Global Banking & Finance Review

Posted on October 26, 2026

2 min read

· Last updated: October 26, 2026

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EU Agrees to Temu’s Plan to Remedy Digital Services Act Breach After Fine

European Commission Accepts Temu's Remedial Action Plan

Background of the Digital Services Act Breach

BRUSSELS, Oct 26 (Reuters) - The European Commission said on Monday it had accepted Chinese online retail platform Temu's action plan to remedy a breach of the EU's Digital Services Act, following a fine imposed on the company in May.

Details of the Action Plan and Timeline

The plan focuses on five measures to remedy the breach, and Temu now has four months to conduct an interim risk assessment, the Commission, which acts as EU regulator, said in a statement.

Financial Penalties Imposed

The Commission had imposed a €200 million ($224.08 million) fine on Temu in May for not doing enough to stop the sale of illegal products.

Temu's Response to the Commission's Approval

A spokesperson for Temu, which is owned by PDD Holdings, said it welcomed the Commission's approval of its plan under which the company will have to assess possible shortcomings of its content moderation system, among other steps.

Impact on Ecommerce Platforms

New EU Fees on Low-Value Packages

Temu, along with Shein and other ecommerce platforms, has been hit by the EU imposing €3 fees on low-value ecommerce packages since the start of July. Parcels worth less than €150 previously entered the bloc duty-free.

Exchange Rate Information

($1 = 0.8925 euros)

Reporting Credits

(Reporting by Inti Landauro; Additional reporting by Foo Yun Chee and Helen Reid;Editing by Sudip Kar-Gupta and Susan Fenton)

Key Takeaways

  • The Commission recognized Temu’s remedial plan targeting illegal product risks via five tailored measures.
  • Temu was fined €200 million in May 2026 for inadequate systemic risk assessment under the DSA, particularly concerning unsafe electronics and baby toys. (ec.europa.eu)
  • As part of the accepted plan, Temu has four months—until approximately November 30, 2026—to conduct an interim risk assessment evaluating implementation effectiveness. (lapresse.us)

References

Frequently Asked Questions

Why did the EU fine Temu?
Temu was fined €200 million by the European Commission for insufficient action to prevent the sale of illegal products on its platform.
What is Temu's action plan in response to the EU fine?
Temu will implement five measures, including an interim risk assessment and evaluating its content moderation system, to comply with the Digital Services Act.
How long does Temu have to fulfill its action plan?
Temu has four months to conduct an interim risk assessment and begin implementing the corrective measures required by the EU.
What new regulations affect ecommerce parcels in the EU?
Since July, the EU charges a €3 fee on low-value ecommerce parcels under €150, which previously entered the bloc duty-free.

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