EU accepts Temu plan to remedy Digital Services Act breach

BRUSSELS, Oct 26 : The European Commission said on Monday it had accepted Chinese online retail platform Temu's action plan to remedy a breach of the EU's Digital Services Act, following a fine imposed on the company in May.

The plan focuses on five measures to remedy the breach, and Temu now has four months to conduct an interim risk assessment, the Commission, which acts as EU regulator, said in a statement.

The Commission had imposed a €200 million ($224.08 million) fine on Temu in May for not doing enough to stop the sale of illegal products.

A spokesperson for Temu, which is owned by PDD Holdings, said it welcomed the Commission's approval of its plan under which the company will have to assess possible shortcomings of its content moderation system, among other steps.

Temu, along with Shein and other ecommerce platforms, has been hit by the EU imposing €3 fees on low-value ecommerce packages since the start of July. Parcels worth less than €150 previously entered the bloc duty-free.