EU's €200M Temu Fine Signals Shift to Proactive Risk Management Over Reactive Compliance

The European Commission fined Temu €200 million for failing to properly identify and assess systemic risks of illegal products on its marketplace under the Digital Services Act. The penalty reflects a regulatory shift: platforms must now anticipate and prevent harms rather than respond to violations after they occur. This approach requires fundamental changes in how marketplaces monitor sellers and police illegal goods before consumers encounter them.