BRUSSELS, Belgium (AFP) — The EU charged China-based shopping platform Temu on Thursday with an investigation that could lead to huge fines over concerns that the site has done little to stop the sale of illegal goods.

Temu, which is extremely popular in the European Union even though it only entered the continental market last year, has an average of around 92 million monthly active users in the bloc.

The European Commission, the EU’s powerful digital watchdog, said the investigation would also look at dangers from the platform’s use of gamification and “potentially addictive design” that could harm users’ “physical and mental health”.

The investigation is being launched under a massive law known as the Digital Services Act (DSA), which is pushing the world’s biggest tech firms to do more to protect European consumers online.

“We want to make sure Temu complies with the Digital Services Act. “In particular, to ensure that products sold on their platforms meet EU standards and do not harm consumers,” EU technology chief Margrethe Vestager said in a statement.

The EU wants to know more about the systems Temu has in place to “limit sales” and how it prevents the “re-emergence” (once removed) of illegal products such as pharmaceuticals, chemicals and toys, as well as counterfeit products.

The company said it “takes its obligations under the DSA seriously.”

“We will fully cooperate with regulators to support our shared goal of a safe and secure market for consumers,” a Temu spokesperson said in a statement.

Temu is in talks about joining a European agreement facilitated by the commission, which brings together shopping platforms and others to stop the sale of counterfeit goods online.

The company will also have to explain what measures it has taken to address risks posed by its service, including game-like rewards programs.

The investigation comes after Temu submitted a risk assessment report to the EU, as well as responding to multiple requests for information; The latest report was published on October 11.

The company can avoid fines if it makes commitments that it believes will alleviate the EU’s concerns during the investigation.

European consumer groups have previously warned that Temu violates EU law.

They filed a complaint with the commission in May, accusing Temu of using “manipulative techniques” to get users to spend more and other violations.

Europe’s BEUC umbrella consumer rights group welcomed the investigation on Thursday.

“This decision of the commission is a promising step, but only the first. It is now important for the commission to keep the pressure on Temu and force the company to comply with the law as soon as possible,” said BEUC’s Fernando Hortal Foronda.

The EU investigation will also look at Temu’s systems and how it recommends content and products to users, and will analyze the platform’s data access to researchers.

Temu will also need to provide more details about the “parameters” of recommendation systems used by platforms to deliver more personalized content.

The EU emphasized that “the initiation of official proceedings does not prejudice the outcome” and that there is no deadline for the completion of the investigation.

Temu is among 25 “very large” online platforms that must comply with the DSA or risk fines of up to six per cent of their global turnover or even bans for serious and repeated infringements.

Other shopping platforms required to comply with the DSA include Chinese online retailer AliExpress, US giant Amazon and China-based Shein.

Other DSA investigations have targeted AliExpress, social media platform X, formerly called Twitter, owned by tech billionaire Elon Musk, as well as Facebook and Instagram, owned by Meta.