The Commission, which serves as the EU’s executive body and digital services regulator, announced on Monday that it had accepted the company’s proposed measures to remedy the breach. Under the agreement, Temu has four months to conduct an interim risk assessment as part of its compliance efforts.
The action plan outlines five measures intended to address the concerns raised by European regulators. The assessment will require the company to examine potential weaknesses in its systems and determine whether further changes are needed to meet the bloc’s digital safety requirements.
The fine imposed in May followed concerns that Temu had not done enough to prevent illegal products from being offered for sale on its platform, prompting regulatory action under the EU’s digital rules.
A spokesperson for Temu, which is owned by PDD Holdings, welcomed the Commission’s decision to approve the plan, saying the company would undertake the required steps, including assessing possible shortcomings in its content moderation system.
The approval marks a further stage in the EU’s efforts to strengthen oversight of major online marketplaces and ensure that platforms take appropriate measures to identify and restrict illegal goods.
EU Tightens Rules on Low-Value E-commerce Parcels
Temu’s regulatory challenges come amid broader changes to the EU’s treatment of low-value imports, affecting several international online retailers.
Since the beginning of July, the bloc has imposed a €3 fee on low-value e-commerce packages, a measure affecting platforms such as Temu and its competitor Shein. Previously, parcels valued at less than €150 could enter the EU without customs duties.
The changes form part of a wider shift in the regulatory environment for cross-border online shopping, as European authorities seek to address concerns surrounding imports and the operation of international e-commerce platforms.
For Temu, compliance with the Digital Services Act and the evolving rules governing imported goods will remain important as it continues operating in the European market. The outcome of its risk assessment could help determine whether additional measures are necessary to address the Commission’s concerns.