The European Union has imposed a €200m ($232m; £173m) fine on Chinese-owned online retailer Temu for having illegal products such as dangerous baby toys and faulty chargers for sale on its platform.

The European Commission said the company had "failed to diligently identify, analyse and assess the systemic risks" of the products and the harm they could cause to consumers.

Temu has been under investigation since October 2024 over whether it has been meeting its obligations as a designated Very Large Online Platform under EU law.

The online retailer said it disagreed with the decision and deemed the fine disproportionate, and was now considering available options.

The investigation involved a mystery shopping exercise carried out by an independent testing organisation, which found that a high percentage of chargers purchased through Temu failed basic electrical safety tests. It also found that a high proportion of baby toys posed safety risks, containing chemicals above legal limits or featuring small detachable parts that presented suffocation hazards, Euronews reported.

As well as paying the fine, Temu has to present an action plan to address the failures by 28 August. The Commission then has two months to decide whether the company has done enough to comply.

EU tech commissioner Henna Virkkunen told reporters that the decision was intended to send a "very strong message" to Temu.

A Temu spokesperson said in a statement that the retailer respected the need for clear, consistent rules, but that the decision related to 2024 and did not reflect the current state of its systems.

"We disagree with the European Commission's decision and consider the fine to be disproportionate," they said.

"We are reviewing the decision carefully and considering all available options."

But the UK consumer organisation Which? praised the decision and urged the UK to follow suit.

"The EU's decision to fine Temu to the tune of €200m is a strong example of the tough action needed to hold online marketplaces to account for dangerous products on their platforms," said Sue Davies, head of consumer protection policy at Which?.

"The UK government should follow the EU's example and make use of its new powers under the Product Regulation and Metrology Act to make online marketplaces legally responsible for dangerous products."

The fine is only the second imposed under the EU's Digital Services Act for content, the first being a €120m penalty against Elon Musk's X social media network last December.