Chinese online retailer Temu has been fined EUR200 million (US$232 million) for failing to prevent the sale of illegal products, while EU regulators have opened an in-depth investigation into JD.com's EUR2.2 billion bid for German electronics retailer Ceconomy, reports the South China Morning Post.

The Temu penalty followed a two-year probe under the Digital Services Act, which requires large platforms to curb illegal and harmful content. Regulators stated that Temu failed to assess the risks posed by illegal products and criticized its recommender systems and influencer promotions for amplifying dangers to consumers. Further penalties may follow.

The investigation into JD.com's planned acquisition of Ceconomy centers on concerns that foreign subsidies from China, including financing, tax incentives, and grants, may have distorted the EU internal market. Officials indicated that such support could have enabled JD.com to offer conditions that skewed negotiations.

The dual actions highlight Brussels' tougher stance on Chinese e-commerce firms amid rising trade tensions with Beijing.