The European Commission has raised serious concerns about the operations of Chinese e-commerce platform Temu, stating that it may not be doing enough to protect consumers in the European Union.
The concerns stem from preliminary findings under the Digital Services Act (DSA), which outlines strict rules for large online platforms operating in the EU.
Temu, which has nearly 94 million average monthly users in the EU, is considered a “very large online platform” under the DSA.
This status means the company must take greater responsibility for the safety and transparency of the products and services it offers in the European market.
According to the Commission, the platform carries a high risk of exposing EU consumers to illegal products.
The investigation also points to several other issues. These include selling goods that fail to meet EU safety rules, giving customers misleading discounts, publishing fake reviews, and offering limited details about third-party sellers.
Additionally, the Commission believes that Temu’s app design may encourage excessive use.
The investigation into Temu’s business practices began in October. The Commission is now reviewing whether the company has broken DSA regulations.
If it finds Temu in breach of these rules, it could impose fines of up to 6% of the company’s worldwide annual income.
Temu has stated that it is working closely with the Commission and will respond to the claims.
However, the EU has made it clear that protecting consumers online is a legal requirement, and companies must take appropriate steps to follow the law.
No final decision has been made yet, but the case could set a major precedent for how non-EU companies must operate within the European digital market.