Ago joins Shein and Amazon under strict EU digital regulations

The European Commission has designated Temu as a major online platform, similar to Shein and Amazon, requiring compliance with the EU’s stringent Digital Services Act.

Strict EU rules on Temu

According to Reuters, the European Commission said on Friday that Temu will have to comply with stricter EU rules on online content because it has more users than a key criterion. This puts the PDD Group’s fast fashion e-commerce store in the same group as Amazon, Meta Platforms and TikTok.

The European Union’s Digital Services Act (DSA) states that companies with more than 45 million users are “very large online platforms” (VLOPs) and must do more to protect their users from harmful and illegal content and counterfeit goods.

“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.

It hit the EU market in April last year. In the EU, around 75 million monthly active users used the service in the six months ending March 31 this year.

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

Failure to comply with the DSA can have serious financial consequences. Companies violating these regulations risk losing up to 6% of their annual sales worldwide.

The deadline for implementing the Shein regulation is approaching

Shein also has the same problems. Last month, the commission told Shein it must comply with the strictest rules by August because it has more than 45 million users in Europe.

Moreover, the Chinese fast-fashion company was forced to conduct annual risk assessment studies to investigate potential harm to consumers, especially children.

Photo: Screenshot Ago/YouTube