The European Commission has accepted Temu’s plan to improve its compliance with the Digital Services Act (DSA), five months after fining the online marketplace €200 million over its failure to properly assess the risk of illegal products on its platform.

The Commission announced the decision today, as Temu’s plan sets out five areas of work, including a platform-specific risk assessment, better use of data to measure whether its safeguards are working, and closer scrutiny of its content moderation systems.

Temu will also examine whether its product recommendation system helps illegal goods reach shoppers, and how sellers might deliberately exploit the platform’s features to promote illegal listings.

The company now has four months to submit an interim risk assessment covering a six-month period ending on November 30, 2026. The assessment must demonstrate that the planned measures have been put in place.

The decision follows a €200 million fine issued on May 28. The Commission found that Temu’s 2024 risk assessment relied on general information about online shopping rather than evidence specific to its own platform.

That approach led the company to underestimate the likelihood that EU shoppers would encounter illegal products, the Commission said.

Test purchases conducted by an independent laboratory found that many chargers failed basic safety checks. Several baby toys also posed medium to high risks, including exposure to banned chemicals and choking hazards from small parts.

The Commission also criticised Temu for not adequately assessing how its recommendation algorithms and influencer promotion programme could help illegal products spread.

The investigation began in October 2024, with the Commission sharing its preliminary findings with Temu in July 2025. Under the DSA process, Temu had until August 28 to submit its compliance plan. A board of national digital services regulators then reviewed it before the Commission made its decision.

“Risk assessments are not box-ticking exercises; they are the backbone of the DSA,” Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty, said in May.

Temu disputed the original fine, calling it disproportionate. The company argued that the case focused on its first risk assessment from 2024 and did not reflect the systems it currently uses.

The DSA allows the Commission to fine large online platforms up to 6% of their worldwide annual turnover for violations. It can also impose periodic penalties if companies fail to comply with its decisions.

In July, Brussels fined AliExpress €550 million, its largest penalty under the law to date.