EU regulators fined Chinese e‑commerce platform Temu 200 million euros ($232 million) for selling unsafe baby toys and other products that breach the Digital Services Act. The penalty, the largest ever under the law, follows a mystery‑shopping test that found a high failure rate among chargers and chemical hazards in toys. Temu must submit a compliance plan by Aug. 28.

The fine arrives as Brussels expands scrutiny of Chinese marketplaces, with parallel investigations into rivals Shein, AliExpress and a proposed JD.com takeover of German retailer Ceconomy. Officials argue unsafe, counterfeit or non‑compliant goods undermine consumer safety, environmental standards and fair competition across the EU’s 450 million‑strong market. The action signals tougher enforcement of digital‑commerce rules.

Temu, owned by PDD Holdings, serves millions outside China and has already halted shipments to the United States after tariff loopholes closed. The EU penalty forces the platform to overhaul product vetting, raising costs for low‑price sellers and giving European retailers a regulatory edge. Compliance deadlines now drive immediate operational changes at Temu.

EU commissioners will debate broader trade measures next week, reflecting growing political pressure to curb China’s market dominance. While Temu can appeal the fine, any delay prolongs uncertainty for its European supply chain and could prompt stricter import checks. The enforcement demonstrates Brussels’ willingness to use the Digital Services Act as a lever against non‑compliant overseas platforms.