Brussels accuses Temu of breaking EU digital rules

The European Commission claims serious shortcomings in Temu's product management.

Brussels accuses Temu of violating EU digital regulations

Brussels has accused Chinese ecommerce platform Temu of violating EU digital regulations. The European Commission discovered a significant risk of illegal products being sold on Temu's site, according to preliminary findings shared on Monday. The investigation highlighted issues with products that failed to meet EU standards, including hazardous baby toys and electronics. Launched last year under the Digital Services Act, the investigation aims to hold online marketplaces accountable for the safety of their offerings. The commission criticized Temu’s risk assessment, which it deemed unreliable and overly general, potentially undermining efforts to address the sale of illegal items. Temu now has a few weeks to address the findings and may face fines of up to 6% of its annual global revenue if the investigation confirms the breaches.

The Commission's focus on Temu reflects a growing trend of regulatory scrutiny over ecommerce platforms, especially those operating outside the EU. As consumer protection gains priority, platforms like Temu are under pressure to implement effective measures against illegal sales. This situation may lead to stricter enforcement of digital regulations across the board, particularly targeting foreign companies. The EU’s planned €2 fee for small packages entering the market further indicates ongoing efforts to regulate imports, signaling challenges ahead for Chinese ecommerce players. The potential repercussions for Temu are not only financial but may also affect its future operations in Europe, as trust in compliance becomes crucial for sustaining business.

Highlights

The outcome of this investigation may reshape how ecommerce operates across Europe.