EU Accepts Temu Compliance Plan After €200 Million Digital Services Act Fine

The European Commission has accepted an action plan from online marketplace Temu to address failures in its assessment of risks from illegal products sold through its platform. The decision, announced on Monday, October 26, is a compliance step following a €200 million penalty imposed in May under the Digital Services Act (DSA). It does not overturn that fine or establish that Temu has already completed the required changes.

The plan contains five measures aimed at improving the platform's assessment and control of potentially illegal listings. Temu is expected to examine weaknesses in automated and manual content moderation, assess whether recommendation algorithms can increase the visibility of prohibited goods, and consider how sellers might misuse marketplace features. The measures also call for more reliable indicators to judge whether the controls work in practice.

The Commission has given Temu four months to implement the measures and carry out an interim risk assessment. Implementation will be subject to external independent scrutiny. EU authorities will continue monitoring the company rather than treating acceptance of the plan as the end of the regulatory process.

The Commission fined Temu in May after finding that its earlier risk assessment did not adequately address the potential spread of illegal products on the marketplace. That decision and Monday's acceptance of a remedial plan are separate steps: one identified a violation, while the other sets out how the company intends to correct it.

The development is part of wider European enforcement of the DSA, which requires very large online platforms to identify and mitigate systemic risks. For shoppers and sellers, the practical effects will depend on how effectively the new controls are implemented and assessed in the coming months. Temu has welcomed acceptance of its plan.