Since the end of May this year, the low-cost online platform Temu, which currently has 92 million active users in the EU (as of September 2024), has been classified as a very large online platform (VLOP). This classification is accompanied by new obligations, for example, Temu must take stricter measures against illegal products and content in accordance with the Digital Services Act. There are currently suspicions that the Chinese online retailer is not doing enough to implement these measures. If the company violates the requirements, it could face penalties of up to six percent of its turnover.
Specifically, the following points are being examined in the EU Commission's proceedings:
- the systems in place to prevent the sale of illegal products
- the potentially addictive design of the platform
- the recommendation systems used to encourage users to make purchases
- compliance with the obligation to provide researchers with access to data
By initiating formal proceedings, the Commission will first gather further evidence, but also has the option of issuing a decision for non-compliance with applicable law.
Margarethe Vestager, EU Competition Commissioner, commented on this procedure: “We want to ensure that Temu is complying with the Digital Services Act. Particularly in ensuring that products sold on their platform meet EU standards and do not harm consumers. Our enforcement will guarantee a level playing field and that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all.”
Source: European Commission