EU Ramps Up Pressure on Temu Over DSA Compliance
The European Union has escalated its scrutiny of Chinese e-commerce giant Temu, demanding detailed information about its compliance with the Digital Services Act (DSA). The latest inquiry focuses on how Temu prevents the sale of illegal goods and addresses systemic risks to EU consumers.
Key Concerns Driving the Investigation
- Illegal product sales: EU seeks proof of effective mitigation measures
- Trader accountability: Questions about how Temu identifies and blocks repeat offenders
- Consumer protection: Risks to public health and user well-being under review
- Algorithm transparency: Details requested about Temu’s recommender systems
- Data protection: Scrutiny of user privacy safeguards
Background: Mounting Regulatory Pressure
This isn’t Temu’s first encounter with EU regulators. The platform has faced growing scrutiny since:
- May 2024: Consumer groups filed coordinated DSA complaints
- June 2024: Received initial information request alongside Shein
- May 31, 2024: Designated as a Very Large Online Platform (VLOP)
“We are concerned about the possible presence of traders selling illegal products on the platform.” — Margrethe Vestager, EU Competition Chief (Tweet)
Potential Consequences of Noncompliance
Failure to adequately respond by the October 21 deadline could trigger:
- Additional information requests
- Formal investigation proceedings
- Fines up to 6% of global annual turnover
Industry Reactions and Temu’s Response
The European Consumer Organisation (BEUC) welcomed the EU’s action, stating:
“Various member tests…point to a systemic problem that Temu is currently failing to address properly.” — Fernando Hortal Foronda, BEUC Digital Policy Officer
In response, Temu stated:
“We have received the request…and are fully cooperating. Consumer safety is a top priority.” — Abigail Rush, Temu Spokesperson
What Comes Next?
The EU’s rapid response suggests heightened vigilance toward e-commerce platforms, particularly regarding:
- Product safety
- Trader transparency
- Algorithmic accountability
As regulatory pressure mounts, all eyes remain on Temu’s October 21 submission and potential next steps from Brussels.
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