The European Union has hit Temu with a €200 million fine over illegal product sales. The penalty, announced this morning, lands as the British consumer watchdog launches its own investigation. This is a major blow to the Chinese e-commerce giant. It signals a new phase in the crackdown on cheap online marketplaces.
Sources in Brussels say the fine is for selling goods that violate EU safety and consumer laws. Temu, known for its rock-bottom prices, has been under scrutiny for months. The British Competition and Markets Authority is now following suit. They are probing whether the company has dodged UK rules.
This is a classic 'Brussels effect.' The EU acts first. Then the UK follows. The timing is brutal for Temu. It comes just as the company was expanding in Europe. The fine will sting. It is one of the largest ever for a digital retailer.
Westminster is watching closely. The government wants to show it can protect consumers post-Brexit. The CMA moves are seen as a test of its independence. Labour MPs are already demanding tougher action. They say the fine is a drop in the ocean for Temu's revenues.
Inside the Treasury, there is nervousness. They do not want to alienate a major Chinese investor. But consumer safety is a voter issue. The polling shows the public is angry about dodgy goods sold online. The backbench mood is turning ugly.
For now, Temu has not commented. But expect a fight. This is not just a fine. It is a statement. The game is changing for the digital economy.
