The European Union on Thursday launched a formal investigation into Chinese-founded e-commerce platform Temu over suspicions that the site is doing too little to stop the sale of illegal products, in a probe that could lead to massive fines.
Extremely popular in the EU, Temu has an average of around 92 million monthly active users on the block, despite only entering the continent’s market last year.
The investigation will also look at the dangers posed by the platform’s “potentially addictive design”, which could have “negative consequences” on the “physical and mental well-being” of users, the European Commission, the EU’s powerful digital watchdog, said. .
The investigation is being launched under a sweeping law called the Digital Services Act (DSA) that forces the world’s biggest tech companies to do more to protect European consumers online.
“We want to ensure that Temu is compliant with the Digital Services Act, in particular in ensuring that products sold on their platform meet EU standards,” EU technology chief Margrethe Vestager said in a statement. and do not harm consumers.”
The EU wants to know more about the systems Temu has in place to “limit the sale” of illegal products as well as how the platform restricts their “re-appearance”.
Teemu must also explain what measures it is taking to address any risks associated with its service, including reward programs such as games.
Temu said he would cooperate with the European Union.
“Temu takes its obligations under the DSA seriously, continuously investing in strengthening our compliance systems and protecting consumer interests on our platform,” a Temu spokesperson said.
“We will cooperate fully with regulators to support our shared goal of a safe, trustworthy marketplace for consumers,” the spokesperson said in a statement.
multiple probes
The Commission said the EU investigation will also look at TEMU’s systems and how they recommend content and products to users as well as whether the platforms comply with TEMU’s obligation to provide researchers with access to publicly available data. doing.
Teemu will also have to provide more details about the “parameters” of its recommendation system, which are used by the platform to push more personalized content.
The EU stressed that “the initiation of formal proceedings will not affect its outcome” and that there is no deadline for the investigation to be completed.
Temu is one of 25 “very large” online platforms that must comply with the DSA or risk fines that could reach six percent of their global turnover, or even more severe and often Sanctions may also be imposed for repeated violations.
Other shopping platforms that must comply with the DSA include Chinese online retailer AliExpress, US giant Amazon and Chinese-founded Shein.
Other DSA investigations have targeted AliExpress, social media platform X, which is owned by tech billionaire Elon Musk and used to be Twitter, as well as Meta-owned Facebook and Instagram.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
