
Temu: Key Areas Under EU Investigation
Temu’s attitude to stopping illegal product sales on its platform is the main emphasis of the inquiry. Reports that Temu has let once outlawed vendors to re-enter the market raise particular questions. Forrester analysts propose this regulatory focus could slow Temu’s European market growth.
The possibly addictive elements of the platform, including its reward systems and product recommendation algorithms, are another important area under research. The Commission seeks to ascertain Temu’s level of implementation of suitable defenses against these hazards.
Next Steps in the Investigation
EU authorities will compile more data going ahead using several channels, including:
- Inquiries for information to Temu and outside parties
- Platform watching operations
- Interviews among stakeholders
Temu’s Response
Temu has responded by pledging complete cooperation with authorities, so preserving a safe market and demonstrating their dedication to consumer protection. The business claims it is constantly striving to improve its methods of regulatory compliance.
Similar EU investigations into other e-commerce sites, including AliExpress, run concurrently with this one. EU starts official investigation on Temu’s company policies.
Frequently Asked Question
What specific measures are Temu and Shein required to take to comply with the Digital Services Act?
How might these investigations impact Temu and Shein's business operations in the EU?
What are the potential financial sanctions if Temu and Shein are found violating the DSA?