CHINESE ONLINE RETAILER Temu is potentially in breach of EU digital marketplace by the European Commission, according to the preliminary results of an investigation into the platform.

Illegal products, such as small toys for infant children and miniature electronics, were found to have been listed on the website. The European Commission today said its investigation believes Temu does not mitigate properly for the sale of the products.

It comes as Ireland’s European Commissioner Michael McGrath – in charge of consumer protection in Europe – told reporters last month that he has “serious concerns” over the sale of products from online Chinese retailers, such as Temu.

Europe has strict laws over the sale of products online, and it is up to retailers to properly moderate and mitigate the listing of illegal goods on their platforms, or face harsh sanctions from the European Commission.

More than 12m small packages of products are imported to Europe every day, with more than 90% of them arriving from China. McGrath singled out the Chinese online retailer Temu last month.

He told reporters: “We have serious concerns about their product safety record and also about the lack of respect, in many accounts, for the EU safety rules.”

Temu, an online wholesale retailer, is one of the largest digital marketplaces available to citizens in the EU. The firm said today that it “will continue to co-operate fully with the commission”.

The European Commission will continue to complete its full investigation into the potential breaches. If the final findings of its probe confirm that there has been a breach, a deadline will be set for the retailer to pay a fine, which could be valued in the millions.

Should a fine be imposed, it will be up to the Irish Digital Services Officer to collect the penalty as Temu has its European headquarters in Dublin.

McGrath is set to meet with Chinese authorities in an upcoming trade mission, where he will discuss the issue with officials. He said the EU will be “robustly implementing” consumer protection legislation.

“I have responsibility for consumer protection. It’s a hugely important part of the portfolio, which is not just about protecting consumers and keeping them safe, it’s also about the level playing field issue for European businesses,” he said last month.

“We expect [them] to compete. And if they’re competing with companies or platforms that don’t respect our rules, then it’s not a fair fight. That’s something we are determined to address,” he added.

Products sold in the EU’s single market must pass a risk assessment, which evaluates potential risks to consumer health and details mitigation plans when and if breaches are identified.