The European Commission fined online retailer Temu 200 million euros for failing to identify systemic risks of illegal products sold on the website, according to a Thursday news release.
Temu's penalty comes after a two-year investigation that found the platform failing safety tests under the bloc's Digital Services Act.
The EU flagged safety medium to high-severity safety risks in tested baby toys for containing chemicals beyond legal limits, the commission said.
"Temu respects the objectives of the Digital Services Act and the need for clear, consistent rules across the digital economy. However, we disagree with the European Commission's decision and consider the fine to be disproportionate," Reuters quoted Temu as saying.
The online platform said the penalty reflects its first assessment in 2024 and is no longer attuned to the current state of the company.