The European Commission has launched a formal investigation into Temu, a China-based online marketplace, over allegations of illegal sales, addictive design practices, and possible violations of the EU's Digital Services Act.
Temu, which declared 92 million monthly users in September, is designated as a “Very Large Online Platform” under EU law, a category that brings strict obligations to protect user safety and prevent illegal activities.
The European Commission said in a statement on Thursday that opening proceedings does not determine an outcome or limit additional actions by the EU or national consumer protection and market authorities.
However, should the Commission find that Temu has breached digital regulations, the platform could face a fine of up to 6% of its global revenue.
The EU’s Commissioner for Competition, Margrethe Vestager, said: “We want to ensure that Temu is complying with the Digital Services Act. Particularly in ensuring that products sold on their platform meet EU standards and do not harm consumers.”
“Our enforcement will guarantee a level playing field and that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all,” she added.
The European Commission said in a statement on Thursday that opening proceedings does not determine an outcome or limit additional actions by the EU or national consumer protection and market authorities.
However, should the Commission find that Temu has breached digital regulations, the platform could face a fine of up to 6% of its global revenue.
The EU’s Commissioner for Competition, Margrethe Vestager, said: “We want to ensure that Temu is complying with the Digital Services Act. Particularly in ensuring that products sold on their platform meet EU standards and do not harm consumers.”
“Our enforcement will guarantee a level playing field and that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all,” she added.
📢update!
— Margrethe Vestager (@vestager) October 31, 2024
Today we open a formal investigation to assess whether @temu may have breached the Digital Services Act.
We will check (e.g.):
👉whether TEMU did enough to prevent the presence of illegal traders
👉the risks of addictive design of the servicehttps://t.co/bxstNi982G https://t.co/OiMOe2PgS8
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