The European Commission accepted a five-point action plan from PDD Holdings' subsidiary, Temu. This plan addresses breaches of the Digital Services Act (DSA). The action plan follows a €200 million fine. Temu received this fine in May 2026 for failing to prevent the sale of illegal and unsafe products on its platform.
Temu commits to a detailed risk analysis. It will evaluate its content moderation. The company will also assess how its recommendation algorithms may have amplified the visibility of illegal goods. Temu will investigate how sellers might exploit platform features to list prohibited items. Temu has four months to complete an interim risk assessment. This assessment will demonstrate the effectiveness of the new measures to regulators.