With the first landmark penalty officially issued under the Digital Services Act, Very Large Online Platforms selling in Europe must immediately audit their compliance strategies to mitigate massive financial and reputational risks.
What the EU’s Digital Services Act Fine Means for Companies Selling in Europe
In May 2026, the European Commission issued a landmark fine of €200 million to a major global online marketplace, citing serious failures to comply with the Digital Services Act (DSA). The decision sent a clear message to online marketplaces operating in or supplying products to the EU.
What the Digital Services Act Requires
The Digital Services Act (Regulation (EU) 2022/2065) entered into force in 2022 and applies across the EU to digital intermediary services from February 2024. For Very Large Online Platforms (VLOPs), those with 45 million monthly active users or more in the EU, the obligations are especially stringent.
Under the DSA, large platforms are required to:
- Conduct thorough, evidence-based risk assessments identifying systemic risks, including the dissemination of illegal products
- Put in place reasonable and proportionate mitigation measures to address identified risks
- Ensure recommender systems and promotional features do not amplify the spread of unsafe or non-compliant items
- Cooperate with market surveillance authorities and provide transparency about their product safety processes
Its risk assessment was found to be based on generic sector-wide data rather than evidence specific to its own service. Independent testing carried out during the Commission’s investigation revealed that a very high percentage of certain product categories.
It also includes chargers and baby toys, which failed basic safety requirements or contained chemicals exceeding legal limits.
Why This Matters Beyond the Platform Itself
It would be a mistake to view this enforcement action as relevant only to the platform that received the fine. The implications extend throughout the supply chain to every manufacturer, importer, and authorised representative, whose products are sold through online channels in the EU.
Manufacturers must ensure their products conform to applicable safety requirements before placing them on the market. Importers and distributors are responsible for verifying that products bear the correct markings, are accompanied by required documentation, and do not pose risks to end users.
When a marketplace is fined for failing to identify illegal or unsafe products circulating on its platform, regulators and market surveillance authorities across EU member states will inevitably increase scrutiny of the products themselves and of the economic operators responsible for them.
Key Product Safety Obligations for EU Market Access
Whether your products are sold through a third-party platform or through direct distribution, the following compliance requirements apply:
- CE Marking and Declaration of Conformity, where applicable
Many products falling under EU harmonised legislation must bear CE marking and be supported by a valid Declaration of Conformity and complete technical documentation.
- Authorised Representative
Non-EU manufacturers placing products on the EU market can appoint an EU Authorised Representative or Responsible Person under applicable regulations.
- Risk Assessment Documentation
A robust, product-specific risk assessment is not merely a formality. Generic or superficial assessments will not satisfy regulatory scrutiny.
- Traceability
Products must carry adequate identification information enabling market surveillance authorities to trace them back to the responsible economic operator.
- Incident Reporting
Where a product is found to pose a serious risk, economic operators have an obligation to notify competent authorities and, where necessary, initiate corrective actions including recalls.
The Role of Online Marketplaces Under the GPSR
The General Product Safety Regulation, which applies from December 2024, introduced specific obligations for online marketplaces for the first time. Platforms are now formally classified as “fulfilment service providers” or “online marketplace operators” with their own compliance duties, including the requirement to:
- Establish internal complaint handling processes for product safety issues
- Cooperate with market surveillance authorities upon request
- Remove unsafe products or disable access to them promptly upon notification
- Ensure product listings include the information required by the GPSR
What Companies Should Do Now
Companies should consider the following immediate steps:
- Review whether all products currently listed on EU-facing online platforms have up-to-date technical documentation, CE marking (where required), and valid Declarations of Conformity (if applicable)
- Verify that an EU Authorised Representative or a Responsible Person has been appointed and registered where required by applicable legislation
- Assess whether existing risk assessments are product-specific and evidence-based, not generic or boilerplate
- Confirm that post-market surveillance processes are in place to detect and respond to safety issues identified in the field
- Engage proactively with the requirements of the GPSR, particularly if products are distributed through online platforms
Sources
1. European Commission — Commission fines major online marketplace €200 million for breaching the Digital Services Act (28 May 2026): Commission fines Temu €200 million for breaching the Digital Services Act | Shaping Europe’s digital future
2. Commission fines Temu €200 million for breaching the Digital Services Act
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