The European Union has launched an investigation into Chinese e-commerce platform Temu, owned by PDD Holdings, over its failure to prevent the sale of illegal products. The EU aims to ensure Temu’s compliance with the Digital Services Act (DSA), specifically to verify that products sold on the platform meet EU standards and do not pose risks to consumers.
Under the DSA, internet platforms with over 45 million users in the EU are required to prevent the spread of misinformation and illegal content, or face fines of up to 6% of global revenue.
A spokesperson for Temu expressed the company’s commitment to cooperating closely with regulators, pledging to comply with DSA requirements, and stated that it would continue investing in compliance systems to protect consumer rights. Temu is also considering participation in a voluntary agreement organized by the European Commission (EC) to combat the online sale of counterfeit goods.
Temu joins other tech giants, including Meta, AliExpress, TikTok, and X, now under scrutiny in the EU’s effort to establish a global standard for tech regulation. Throughout the investigation, Temu could make commitments to address the EC’s concerns and potentially avoid penalties.
This inquiry follows an October 11 request from the EC, requiring Temu to disclose data and internal documentation on how it handles counterfeit and unsafe products on its marketplace. Since its global expansion, Temu has grown significantly, quickly ranking among the most downloaded apps in the U.S., with its flash sales, game-like features, and low prices appealing to consumers worldwide.
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Source: Vietnam Insider