Temu under scrutiny: EU investigates potential digital law breaches

The Chinese online marketplace Temu is in breach of European digital law, according to an analysis by EU Commission experts.

A preliminary assessment by the Brussels authority revealed a high risk for EU consumers encountering illegal products on the platform.

The EU Commission stated that, under the Digital Services Act (DSA), Temu is obligated to better address the risks of illegal product distribution on its marketplace. Commission Vice-President Henna Virkkunen commented: "Consumer safety online is non-negotiable in the EU."

The Chinese company now has the opportunity to respond to these allegations. If Temu fails to adjust its conduct or refute the accusations, the Commission may formally declare a violation. This could result in a fine of up to six percent of Temu's global turnover.

The authority, led by Ursula von der Leyen, emphasised on Monday that it has not yet reached a final decision on whether Temu has violated EU law. However, it confirmed ongoing investigations into other alleged breaches of digital law by Temu, including the use of addictive design features on the marketplace.

Investigations into Temu have been ongoing for some time. In October, the Commission announced a review of the platform's efforts to combat the sale of illegal products. At the time, it was reported that unscrupulous traders would reappear on the platform even after being blocked.

Temu enjoys considerable popularity among customers in Germany and Europe. The provider is already among the largest online retailers in Germany, with several million users across the EU. Under EU digital law, it is classified as a very large online platform (VLOP), as the company reported having over 45 million active monthly users in the EU.

Independent of the DSA investigation, European consumer protection authorities are also taking action against Temu. As announced in November by the Consumer Protection Cooperation (CPC) Network, several practices on the platform violate EU law.

Problematic practices highlighted included false discounts, fake reviews, and a lack of clear information regarding consumer rights. Temu also allegedly conceals contact details, making it difficult for customers to reach the platform. It also creates the impression that products are only available for a limited time.

The Brussels proceedings against Temu coincide with increasing economic tensions with China. As evident during last week's EU-China summit, progress on the central issue of trade remains elusive, despite a willingness to engage in dialogue. Commission President von der Leyen made it clear that the economic relationship between the two powers needs to become more balanced.

This article was translated to English using an AI tool.

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