The European Union has initiated an investigation into the Chinese e-commerce platform Temu due to concerns regarding its compliance with the Digital Services Act (DSA). The inquiry aims to determine whether Temu has adequately restricted the sale of illegal products and effectively managed the reappearance of previously banned sellers.
As part of the investigation, the EU will assess Temu's internal systems designed to prevent the sale of non-compliant goods, as well as its platform's potentially addictive game-like design. The DSA mandates that large online platforms implement measures to combat harmful content and provide users with a means to report issues.
Temu, a subsidiary of PDD Holdings, has stated its commitment to cooperating with regulators and is currently considering joining a European anti-counterfeiting initiative. This initiative, known as the Memorandum of Understanding on the Sale of Counterfeit Goods Online, aims to enhance collaboration among e-commerce platforms to address the issue of counterfeit products.
The investigation follows a preliminary analysis of a report submitted by Temu and highlights the EU's ongoing efforts to enforce compliance among major online platforms, with potential fines reaching up to 6% of global revenue for violations.