The European Commission has levied a €200 million fine against the Chinese ecommerce platform Temu for failing to adequately address the risk of illegal products being sold on its site. This penalty is part of the EU's increased scrutiny of online marketplaces under the Digital Services Act (DSA), which mandates that large platforms assess and mitigate risks associated with illegal goods. Temu, which has seen rapid growth since its entry into the European market in 2023, has been criticized for undercutting local businesses by shipping low-cost items directly from China, avoiding import duties due to the low value of each order. In response to concerns over consumer safety, the EU is implementing a new customs duty of €3 on parcels valued below €150 starting in July. Additionally, Temu faces a separate investigation regarding the sale of illegal goods, such as unsafe toys. The company has until the end of August to submit a detailed action plan to the Commission outlining measures to comply with the DSA.