The European Commission has fined the Chinese online platform Temu €200 million for violating the EU’s Digital Services Act (DSA) due to insufficient assessment of the risks associated with the distribution of illegal and dangerous goods on its marketplace.
According to the European Commission’s statement, Temu failed to exercise due diligence in identifying illegal goods on its platform and in assessing the potential harm to consumers in the EU. The investigation revealed that the platform posed a high risk of purchasing goods that do not meet European safety requirements, including chargers, children’s toys, clothing containing banned chemicals, and jewelry containing lead.
The European Commission, in particular, highlighted the very high proportion of chargers that failed basic safety tests. Similar concerns were raised regarding children’s toys, which posed a threat due to chemical concentrations exceeding permissible limits, as well as other risks to consumers. During the inspection, the regulator used the “mystery shopper” method and laboratory testing of products.
According to the European Commission’s assessment, Temu’s risk assessment report did not meet DSA requirements, as it did not allow regulators, users, and the public to understand the true scale of potential harm from illegal goods sold on the platform. Brussels also believes that Temu’s recommendation system could have increased the risk of purchasing such goods by promoting problematic product categories to users.
“Temu’s risk assessment report leaves regulators, users, and the public in the dark regarding the scale of potential harm that illegal goods sold on the platform could cause,” said Henna Wirkkunen, Executive Vice President of the European Commission for Technological Sovereignty, Security, and Democracy.
Temu must pay the fine and submit a plan of corrective measures to the European Commission by August 28. If the regulator deems the proposed steps insufficient, the company could face additional sanctions. The investigation into other possible DSA violations by Temu is ongoing.
The company disagreed with the European Commission’s decision and called the fine disproportionate. Temu stated that it continues to cooperate with regulators and has already made changes to its risk assessment system and internal control procedures.
Temu is owned by China’s PDD Holdings and has become one of the largest international low-price marketplaces in recent years. The platform is actively operating in the EU market, where it falls under the DSA as a major online service. The Digital Services Act imposes obligations on such platforms to assess systemic risks, combat illegal content and goods, ensure algorithm transparency, and protect users. For serious violations of the DSA, companies can be fined up to 6% of their global annual turnover.
European Commission, Temu
The European Commission (EC) has announced an increase in support for “Ukrainian innovators in the high-tech sector.”
“The European Commission has allocated €20 million to fund 41 cutting-edge Ukrainian startups and small and medium-sized enterprises through the European Innovation Council (EIC) competition to help them turn innovative ideas into real solutions,” according to an EC communiqué published on Wednesday.
“This funding will help integrate Ukrainian startups into the European innovation ecosystem, strengthening Ukraine’s long-term economic ties with the EU,” noted EC Commissioner for Startups, Research, and Innovation Katerina Zakharieva.
The statement notes that each company will receive between EUR300,000 and EUR500,000, as well as the opportunity for accelerated access to the EIC’s flagship funding program—the EIC Accelerator—which offers larger grants and equity investments through the EIC Fund.
As part of preparations for the next, 20th package of sanctions against Russia, the European Commission has proposed a complete ban on cryptocurrency transactions related to Russia in order to block channels for circumventing restrictions through digital assets, the Financial Times reported, citing an internal European Commission document.
According to the publication, the idea is to move from targeted measures against individual Russian crypto platforms to a broader approach—banning interaction with crypto services linked to Russia. The document also mentions initiatives to restrict transactions related to the digital ruble and measures against certain payment instruments that, according to Brussels, could be used to circumvent sanctions.
Earlier, European Commission President Ursula von der Leyen, presenting the parameters of the new package, announced her intention to tighten restrictions in the financial sector and take measures against cryptocurrencies and platforms that could be used to circumvent the sanctions regime. Reuters also reported that the package includes additional measures against crypto companies that help Russia circumvent restrictions.
The European Commission’s proposals must be unanimously agreed upon by EU member states. EU countries planned to begin discussing the new sanctions package in the coming days, with a target date of February 23.
The European Commission is considering tightening the conditions for Russian citizens to obtain Schengen tourist visas. At present, short-term visas continue to be issued to Russians in 17 Schengen countries, including Austria, Germany, Italy, Spain, and France.
Among the measures under consideration are:
– increasing the processing time for visa applications from the current 10 to 15 days, with the possibility of extending it to 45 days,
– introducing stricter controls on document compliance and strengthening measures against abuse.
As part of the preparation of a new, 19th package of sanctions against Russia, a clause on a complete ban on the issuance of Schengen tourist visas is being discussed — the proposed option may be included in the package, which is expected to be presented on September 12.
The main impetus for this initiative is the sharp increase in the number of tourist trips by Russians to Schengen countries in the summer months of 2025, which raises concerns about the possible use of tourist trips to prepare malicious actions within the EU.
In 2024, Russians submitted about 606,600 applications for Schengen visas and received about 552,600 visas, an increase of 16-21% compared to the previous year.
Russia ranked fifth in the world in terms of the number of Schengen visas obtained, behind only China, Turkey, India, and Morocco.
The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the European Commission are launching the Ukraine Facility for Infrastructure Reconstruction (Ukraine FIRST) with EUR 30 million in funding to help prepare public investment projects for the reconstruction of infrastructure in Ukraine.
“The new program will cover the preparation of public investment projects in Ukraine, providing technical assistance, including feasibility studies, environmental assessments, cost estimates, and procurement plans,” the EBRD press release said.
It is noted that in addition to initial financing, additional funds are also planned to be provided by EU countries, in particular the Netherlands and Italy.
The program consists of two components. One, managed by the EBRD, will pool donor contributions and provide grants from international financial institutions to support project preparation.
The second, under the leadership of the EIB, will provide expert advisory services: feasibility studies, technical designs, and procurement plans. They will cooperate with the project preparation department of the Ukrainian government.
The pilot project of the program will be a EUR160 million loan to the state-owned Ukrnafta for the development of distributed generation and the installation of 250 MW of capacity.
Another project will be technical support from the EIB in partnership with the World Bank and, possibly, the EBRD, to prepare investments in the reconstruction and modernization of the M-15 Odessa-Remy highway, according to the statement.
The Ukraine FIRST program was presented by partners at the Ukraine Recovery Conference 2025 (URC) in Rome. It is part of the Framework for Project Preparation initiative developed by the Ukrainian government and international partners last year.
The European Commission has classified Russia and Belarus as countries with the highest risk level in accordance with the EU Regulation on the prevention of deforestation and forest degradation (EUDR), which is an additional safeguard against their forest products entering the European market, said Viktor Smal, head of the State Forestry Agency of Ukraine.
“The European Commission has published an updated list of countries classified according to risk level in accordance with the EUDR. Ukraine, like leading European timber producers, has been given low-risk status. This creates conditions for investors to come to Ukraine and attract investment, opening up new opportunities for Ukrainian exporters of furniture and other forest products, facilitating their entry into the European market. At the same time, Russia and Belarus are among the high-risk countries, which makes it even more difficult for their products to enter the EU. We are working to ensure that countries involved in gray import schemes for Russian timber are also included in the list of high-risk suppliers,” Smal emphasized.
He noted that despite the war, thanks to digitalization and reforms in the forestry sector, Ukraine has managed to obtain the status of a low-risk exporter on a par with Germany, Latvia, Finland, and Poland.
“This is the result of our systemic reforms and digital transformation in the forestry sector, in particular the introduction of such tools as e-logging tickets, e-certificates of origin, and e-TTN with photo documentation,” said the head of the State Forestry Agency.
As reported, in 2022, the EU imposed sanctions on imports of Russian timber, pulp, paper, other wood products, and furniture. This applies not only to imports from Russia but also to the trading of Russian timber through third countries.
According to an investigation by Earthsight, European furniture manufacturers have purchased more than 500,000 cubic meters of Russian-made birch plywood during the war, circumventing sanctions.
World Forest ID experts found that 46% of birch products supplied to the UK and labeled as originating from Ukraine, Poland, Estonia, and Latvia were actually produced in Belarus and Russia.
The EUDR, which will come into force for medium and large companies on January 1, 2026, stipulates that products imported into the EU must not contribute to deforestation or forest degradation. Countries are classified according to risk level — low, standard, and high. Low risk status simplifies exports, reduces the regulatory burden, and enhances the competitiveness of Ukrainian producers in the EU market.
https://interfax.com.ua/news/general/1074828.html
