Temu, a Chinese online platform, has been charged by the European Commission for breaking EU regulations pertaining to digital services by failing to sufficiently evaluate the risks involved in selling illicit or hazardous goods within the EU. Temu is not doing enough, according to regulators, to shield customers from potentially harmful products like cheap baby toys and tiny electrical gadgets.
The European Commission stated in its preliminary conclusions that “there is strong evidence that EU consumers are at high risk of encountering illegal products on the platform.” The inquiry is also predicated on a process known as “mystery shopper,” which revealed that among the products available, consumers were “very likely” to encounter unregulated goods.
Temu boasts 93.7 million monthly active users throughout the 27 EU nations, despite just joining the European market in 2023. According to the Commission, Temu’s October 2024 risk assessment was “inaccurate and based on general industry information rather than specific data from its own platform.”
The new Digital Services Act (DSA), which mandates that the biggest internet firms in the world enhance consumer protection and better regulate the products and content on their platforms, is looking into Temu.
Temu may face fines of up to 6% of its yearly global revenue and be compelled to modify its algorithms and practices if the infractions are verified. But tensions with Washington have arisen on the matter of EU digital sovereignty.
In addition to Temu, the EU is looking into Facebook, Instagram, TikTok, AliExpress, and X. It is also thinking about charging €2 for each cheap cargo that enters the union in large quantities.
Ninety-one percent of the 4.6 billion such exports that entered the EU last year originated from China. This figure is anticipated to rise much more.
