“There is a suspicion that not sufficient is finished, not in an efficient strategy to actually forestall the dissemination of unlawful merchandise,” a Commission official stated, briefing reporters forward of the announcement. “We have causes to consider that Temu did not correctly analyze the addictive nature” of a few of its options, they added.
Under the DSA, corporations can face fines of as much as 6 p.c of their annual world income if the in-depth investigation, which isn’t sure by any timeline, confirms main infringements.
Temu, with 92 million month-to-month customers within the EU, was designated as a really massive on-line platform (VLOP) in May, forcing it to adjust to extra stringent guidelines and face direct scrutiny from the Commission.
In a press release, a spokesperson for Temu stated that the corporate “takes its obligations below the DSA significantly, repeatedly investing to strengthen our compliance system and safeguard shopper pursuits on our platform” and “will cooperate absolutely with regulators.”
Booming on-line marketplaces based mostly in China — equivalent to Temu, fast-fashion model Shein and big retailer AliExpress — have more and more landed in policymakers’ and regulators’ crosshairs over issues about dumping practices, pressured labor and environmental air pollution.
In her political tips, Commission President Ursula von der Leyen pledged to deal with “challenges with e-commerce platforms to make sure shoppers and companies profit from a degree enjoying area based mostly on efficient customs, tax and security controls and sustainability requirements.”