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This is means we have Kate Moody, our business editor. Good evening, Kate. Great to see you, as always. The European Union is slapping a huge fine on the Chinese retailer, Temu. 200 million euros, Mark, for selling products that the block considers to be toxic or unsafe. The website is hugely popular in the EU, 130 million users since it was launched here 3 years ago. It sells clothes, home products, and electronics at low prices. Temu is likely to appeal the ruling, as Caroline Baum explains.
Cracking down on online platforms, European tech regulators are going after Temu. The European Commission ordered the Chinese e-commerce giant to pay a 200 million euro fine, saying the platform had not done enough to protect consumers from illegal products. Our message is clear. If you want to access our market of 450 million consumers, you have to respect our rules, period. The ruling occurred as part of a 2-year investigation, which found that Temu's online platform was showing users products that did not comply with EU consumer safety standards. Among others, the report cited baby toys containing levels of chemicals that exceeded legal limits and small electronics that failed basic safety tests.
This is the second penalty that the EU has handed out since enacting the Digital Services Act in 2024, demanding increased accountability from platforms for their content. In December, the European Commission ruled that Elon Musk's X must pay 120 million euros over what they called deceptive verification badges and non-compliance with transparency regulations. Musk has since appealed. Temu similarly disagreed with the EU, calling the fine disproportionate. The decision relates to our first DSA assessment in 2024 and does not reflect the current state of our systems.
EU regulators have ordered the online retailer to pay their fine and present a plan on how they will address breaches to regulations by August 28th. They also said that more fines could be imposed as other parts of the investigation into Temu are ongoing. Air travel has plummeted in the Middle East since the start of the Iran war and that has dragged down overall global travel numbers. For the first time since the pandemic recovery, global demand for air travel dropped. That's according to the International Air Transport Association. Carriers in the Middle East reported a nearly 47% slump in demand in
April compared to a year earlier. That was so acute that it dragged down global demand by 3.4%. By contrast, air travel in Europe and North America remained relatively stable, but IATA warned that the high cost of jet fuel, which nearly doubled last month, could impact the industry in the months to come. France's health system will begin reimbursing the cost of weight loss drugs prescribed to severely obese patients. It'll become the first EU country to do so. About a million French people could be eligible for the payments. France's health minister said the measure would likely cost the government some hundred million euros per year, but that it would save money on treating health problems that are linked to obesity.
These treatments should reduce the number of cases of very, very severe obesity, what we call morbid obesity, which poses serious risks to heart health and leads to major complications that are costly for our health insurance system. Some patients may also be able to avoid surgery, which is even more expensive for the system. Another jewel of France's industrial heritage is once again on the verge of collapse. Duralex glassworks is preparing to request that it be placed in receivership just 2 years after it was transformed into an employee-owned cooperative. Brian Quinn has the story. Outside the French city of Orléans, the 243 employees of Duralex are once again facing an uncertain future.
We don't know where this is headed. I can't tell you much. We're waiting to find out. Founded in 1945, Duralex invented tempered glass, its iconic cafe tumblers earning a reputation as unbreakable. But its finances are far more fragile. It's currently preparing a request to be placed in receivership. Two years ago, Duralex was teetering on the edge of bankruptcy. A skyrocketing energy costs due to the war in Ukraine battered its already precarious finances. In a last-ditch bid to save the company, its employees banded together to take it over as a cooperative. Last fall, it launched a public fundraising drive to get it back on solid ground, seeking 5 million euros. It garnered pledges of 20 million. Now though, some employees say
they're only being paid half their salaries. In April, its new director, who had been emblematic of its transition to a co-op, and his son, who had been installed as chief financial officer, both left their positions, reportedly forced out amid accusations of haphazard management strategies. Despite high-profile commercial tie-ups with famous French brands, just two of its five production lines were said to be operating, with critical modernization work left undone. The organization that represents employee co-ops hopes that workers can be spared. We're trying to find different solutions and staying focused on preserving jobs. If the commercial court of Orléans agrees to take Duralex into receivership, it will be the fifth time in just two decades.
That's all for now, Mark. Kate, thank you very much. Thank you. Kate back with more business as we go through the evening. As ever, thank you for being
