The EU has launched a formal investigation into Temu, a Chinese-founded e-commerce platform, over concerns about insufficient controls to block the sale of illegal products. This action could lead to substantial fines.
Temu, which penetrated the European market just last year, has rapidly gained popularity, attracting around 92 million monthly active users within the EU.
The European Commission, the EU’s primary digital regulator, will also examine the potentially addictive nature of the platform’s design, which might negatively impact users’ physical and mental health.
Under the comprehensive Digital Services Act (DSA), this investigation aims to enforce stricter online consumer protections.
EU tech chief Margrethe Vestager stressed compliance: “We aim to ensure that Temu adheres to the Digital Services Act, especially that its platform’s products meet EU standards and are safe for consumers.”
The inquiry will scrutinize Temu’s methods for limiting the sale of illegal products and preventing their reoccurrence. It will also explore the platform’s strategies to mitigate service-related risks, including its game-like reward programs.
Temu has committed to cooperation, with a spokesperson confirming the platform’s dedication to compliance and consumer safety.
The probe will further investigate how Temu’s systems recommend content and products to users and its adherence to DSA mandates, such as granting researchers access to its public data.
Temu must also clarify the parameters of its recommender systems, which tailor content for users.
Temu ranks among 25 “very large” online platforms required to comply with the DSA. Non-compliance could result in fines of up to 6% of their global turnover or a ban for severe, repeated violations.
The DSA also applies to platforms like AliExpress, Amazon, and Shein. Previous investigations targeted AliExpress, social media platform X (formerly Twitter), and Meta’s Facebook and Instagram.
