“There is a suspicion that not enough is done, not in an effective way to really prevent the dissemination of illegal products,” a Commission official said, briefing reporters ahead of the announcement. “We have reasons to believe that Temu didn’t properly analyze the addictive nature” of some of its features, they added.
Under the DSA, firms can face fines of up to 6 percent of their annual global revenue if the in-depth investigation, which is not bound by any timeline, confirms major infringements.
Temu, with 92 million monthly users in the EU, was designated as a very large online platform (VLOP) in May, forcing it to comply with more stringent rules and face direct scrutiny from the Commission.
In a statement, a spokesperson for Temu said that the company “takes its obligations under the DSA seriously, continuously investing to strengthen our compliance system and safeguard consumer interests on our platform” and “will cooperate fully with regulators.”
Booming online marketplaces based in China — such as Temu, fast-fashion brand Shein and giant retailer AliExpress — have increasingly landed in policymakers’ and regulators’ crosshairs over concerns about dumping practices, forced labor and environmental pollution.
In her political guidelines, Commission President Ursula von der Leyen pledged to tackle “challenges with e-commerce platforms to ensure consumers and businesses benefit from a level playing field based on effective customs, tax and safety controls and sustainability standards.”
