The low-cost provider Temu doesn't have the best reputation. However, the company is now in trouble with the EU Commission. Because it has initiated formal proceedings against the Chinese platform.
Low-cost provider Temu launched in September 2022. Interest in the Chinese platform has been unbroken since the beginning.
In September 2024 alone, the app was downloaded more than 47 million times worldwide. Temu even beats Amazon.
But although the app is popular, the platform has been criticized since the beginning. The EU Commission has now initiated formal proceedings against Temu.
EU Commission initiates proceedings against Temu
The EU Commission suspects that Temu is violating the EU Digital Services Act. For this reason, the authority has initiated a formal procedure to investigate possible violations.
The EU Commission wants to use the procedure to ensure that the products sold on the platform “meet EU standards and do not harm consumers,” explained Vice Commission President Margrethe Vestager.
Our enforcement will ensure a level playing field and ensure that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all.
There are allegations that Temu is not taking enough action against the sale of illegal products. This is mainly about counterfeit items. But the potentially addictive design of the platform is also part of the investigation.
Not the first request from the Commission
The EU Commission has previously asked Temu to be more transparent twice. The last time this happened was on October 11th.
The EU Commission is demanding that online retailers be more transparent about how the sale of illegal products should be prevented. Temu should also explain how the platform handles consumer protection by October 21st.
Temu faces a heavy fine from the EU Commission
The EU Commission relies on the Digital Services Act (DSA), i.e. the EU law for digital services. This enshrines a special duty of care for large online platforms.
If the EU Commission Temu can now prove violations of this law, the Chinese online retailer could face a hefty fine. In this case, the EU Commission could impose a fine of up to six percent of Temu's global annual turnover.
Temu itself has now declared its willingness to work with the EU Commission. The company wants to be a “safe, trustworthy marketplace for consumers,” as the company says.
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Source: https://www.basicthinking.de/blog/2024/10/31/eu-kommission-temu/
