The EU says Temu will have to comply with stricter EU rules on online content

Authors: Foo Yun Chee and Benoit Van Overstraeten

BRUSSELS (Reuters) – Temu will have to comply with stricter EU rules on online content when the number of its users exceeds a key criterion, the European Commission said on Friday, placing the PDD Group e-commerce retailer in a group that includes Amazon, Metaplatforms and TikTok.

Under the EU’s Digital Services Act (DSA), companies with more than 45 million users are known as very large online platforms (VLOPs) and are required to take more action to combat illegal and harmful content and counterfeit products on their platforms.

Temu, which entered the EU market in April last year, had an average of around 75 million monthly active users in the European Union in the six months ended March 31 this year.

“Following today’s appointment as VLOP, Temu will be required to comply with the most stringent rules under the DSA within four months of notification (i.e. by the end of September 2024),” said the EU’s executive body, which serves as the EU’s regulatory authority for .technology – wrote in the statement.

DSA’s responsibilities for VLOP include assessing and mitigating systemic risks associated with their services, such as the listing and sale of counterfeit goods, dangerous or illegal products, and items infringing intellectual property rights.

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

DSA violations can cost companies up to 6% of their global annual turnover.

(Reporting by Foo Yun Chee and Benoit Van Overstraeten; Editing by Mark Potter)