EU Says Temu Breaches Digital Services Act Over Illegal Goods Risk

The European Commission has issued a preliminary finding that e-commerce marketplace Temu is in breach of the Digital Services Act, the bloc’s sweeping online-safety rulebook. Regulators said their analysis shows a “high risk” that EU shoppers may encounter illegal goods on the platform, citing baby toys and small electronic devices as examples. The investigation, which the Commission has intensified in recent weeks, focuses on Temu’s failure to quantify and curb the volume of illicit products offered by third-party sellers. Under the DSA, platforms must demonstrate effective systems for detecting and removing unlawful listings. The Commission did not specify next steps, but a final decision could trigger penalties if Temu does not address the shortcomings identified.