The EU imposes stricter rules on Temu

Under digital services rules, Europe is demanding more transparency from China’s Temu online marketplace and additional measures against counterfeit and dangerous or illegal products.

“Very large online platform”

As a result of Temu’s rapidly growing popularity, the European Commission now considers the e-commerce player a “very large online platform”. As a result, the Chinese company must comply with stricter regulations set out in the “Digital Services Act”, the European regulation on digital services.

By the end of September, Temu will have to report actions taken by the platform against the distribution of illegal content, counterfeit goods or dangerous products. The company must also take additional steps to protect underage consumers. In addition, the EU demands transparency about the algorithms Temu uses and the sellers operating on the platform.

75 million users

The Digital Services Regulation imposes these requirements on all online platforms that reach more than 45 million monthly users in Europe. With as many as 75 million users, Temu, a subsidiary of the Chinese e-commerce giant Pinduoduohas been significantly exceeding this threshold for some time. The regulation also covers, among others: Zalando, She in AND Amazonamong others.

Just two weeks ago, the European consumer organization BEUC and 17 national consumer organizations complained about the Chinese market due to the lack of transparency and the use of manipulative techniques.