EU accepts Temu’s action plan after €200 million fine over illegal goods

EU accepts Temu’s action plan after €200 million fine over illegal goods

BRUSSELS – The European Commission has accepted Temu’s plan to address weaknesses in how the online marketplace assesses the risk of illegal products being offered to consumers across the European Union.

The decision follows a €200 million fine imposed in May, when the Commission found that Temu had not adequately identified and assessed systemic risks linked to illegal goods on its platform. Acceptance of the plan sets out the next stage of compliance work; it does not mean the wider regulatory scrutiny is over.

The measures include a review of possible gaps in Temu’s risk-assessment and content-moderation systems. The company has four months to complete an interim risk assessment, Reuters reported on Monday. Regulators are also concerned with whether platform features, including recommendation systems, could help illegal listings reach more users.

The European Board for Digital Services had previously described the proposed plan as only partly adequate and raised concerns about a lack of detail. The Commission said it clarified key requirements before accepting the measures, according to Reuters and German media reports.

The case is part of the EU’s enforcement of the Digital Services Act, which requires very large online platforms to identify and reduce systemic risks. If Temu does not implement the agreed measures effectively, it could face further enforcement steps.

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