“There’s a suspicion that not sufficient is completed, not in an efficient method to actually forestall the dissemination of unlawful merchandise,” a Fee official mentioned, briefing reporters forward of the announcement. “We’ve causes to imagine that Temu did not correctly analyze the addictive nature” of a few of its options, they added.
Beneath the DSA, corporations can face fines of as much as 6 p.c of their annual world income if the in-depth investigation, which isn’t certain by any timeline, confirms main infringements.
Temu, with 92 million month-to-month customers within the EU, was designated as a really massive on-line platform (VLOP) in Might, forcing it to adjust to extra stringent guidelines and face direct scrutiny from the Fee.
In an announcement, a spokesperson for Temu mentioned that the corporate “takes its obligations underneath the DSA critically, constantly investing to strengthen our compliance system and safeguard shopper pursuits on our platform” and “will cooperate totally with regulators.”
Booming on-line marketplaces based mostly in China — corresponding to Temu, fast-fashion model Shein and large retailer AliExpress — have more and more landed in policymakers’ and regulators’ crosshairs over issues about dumping practices, pressured labor and environmental air pollution.
In her political pointers, Fee President Ursula von der Leyen pledged to sort out “challenges with e-commerce platforms to make sure shoppers and companies profit from a stage enjoying subject based mostly on efficient customs, tax and security controls and sustainability requirements.”
