EU Fines PDD's Temu €200M Under Digital Services Act
The European Commission has issued a fine of EUR 200M to PDD's Temu under the Digital Services Act. The company failed to diligently identify, analyze, 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 alleges. The evidence at the disposal of the Commission indicates that consumers in the EU are very likely to encounter illegal items on Temu. Temu has until August 28 to submit an action plan to the Commission, as required by Article 75 of the DSA. The plan must set out measures to remedy the breach of its risk-assessment obligations. The European Board for Digital Services will have one month from receipt of the plan to issue its opinion. The Commission will then have a further month to adopt its final decision and set a reasonable period for implementation. Failure to comply with the non-compliance decision may lead to periodic penalty payments. The Commission continues to engage with Temu to ensure compliance with the decision and with the DSA more generally.
