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With this, Shein faces strict regulations on online content amid a growing number of users in the EU

Posted on by darion

Temu, China’s leading fast fashion e-commerce retailer, looks set to face tougher EU rules on online content security.

The company belonging to PDD Group will be subject to regulations that already apply to Meta Platforms, Google, X Elon Musk and TikTok. Why? Because the average monthly number of users in Europe has exceeded a key threshold.

Under European Union Act on Digital Services (DSA), companies with over 45 million users are termed very large online platforms (VLOPs) and must take more action to combat illegal and harmful content and counterfeit products on their platforms.

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Shein may be regulated under the same category

Temu, which entered the EU market in April last year, says it had around 75 million monthly active users in the European Union in the six months ended March 31 this year, according to an update on its website.

The European Commission said it was aware that the number of Temu users had exceeded the DSA threshold.

“We are in contact with the platform with a view to a possible future designation,” said a Commission spokesman.

China-founded fast fashion company Shein last month reported 108 million monthly active users in the 27-country bloc and is currently in talks with the Commission about possible designation as a DSA.

  • Reuters with additional editing by Jim Pollard

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Jim Pollard

Jim Pollard is an Australian journalist living in Thailand since 1999. He worked for News Ltd newspapers in Sydney, Perth, London and Melbourne before traveling around South East Asia in the late 1990s. He was a senior editor at The Nation for over 17 years.