Chinese online retailer Temu will be investigated over concerns the site is doing too little to stop the sale of illegal products, in an investigation that could lead to large fines.

The EU has launched a formal investigation into Chinese-founded e-commerce platform Temu on suspicion the site is not doing enough to stop the sale of illegal products, in a probe that could lead to large fines.

The European Union's executive arm wants to ensure the Chinese online shopping platform's goods "meet EU standards and do not harm consumers."