Chinese online retailer Temu faces the strictest level of digital control in the EU

LONDON (AP) — The European Union said Friday it is adding Chinese online retailer Temu to its list of platforms subject to the bloc’s highest level of digital controls.

Because Temu has more than 45 million users, it is classified as a “very large online platform” under the EU’s Digital Services Act, a broad set of rules designed to structure online platforms and keep internet users safe.

This means that by September 2024, Temu will have to comply with the most stringent DSA rules and obligations, which include assessing and mitigating “systemic risk”.

“It must implement mitigating measures to address the risks, such as the listing and sale of counterfeit goods, dangerous products and items infringing intellectual property rights,” the European Commission, the 27-nation bloc’s executive arm, said in a press release.

The commission said the company could do this by taking measures such as modifying its user interface to better report and detect suspicious offers, improving moderation processes to quickly remove illegal items, and improving algorithms to prevent the promotion and sale of prohibited goods. .

He said he “recognizes” the commission’s decision.

“We are fully committed to complying with the rules and regulations set out by DSA to ensure the safety, transparency and protection of our users in the European Union,” the company said in a statement.

Temu only began entering Western markets in the last two years and has gained popularity by offering cheap goods – from clothing to home products – shipped from China.

About two dozen tech names are already on the EU’s list of major internet services requiring the strictest level of supervision since the DSA came into force last year, including Facebook, TikTok, YouTube, Instagram, Amazon and Google Search. Other online services operating in the EU are not exempt – they still have to meet general legal requirements. Violations are punishable by fines of up to 6% of the company’s annual global revenues.