EU is investigating shopping app Temu over illegal products

The EU on Thursday launched a formal investigation into China-based e-commerce platform Temu over suspicions that the site had done little to stop the sale of illegal products; This investigation could lead to large fines.

Temu, which is extremely popular in the European Union even though it only entered the continental market last year, has an average of around 92 million monthly active users in the bloc.

The European Commission, the EU’s powerful digital watchdog, said the investigation would also look at the dangers of the platform’s “potentially addictive design”, which could have “adverse consequences” on users’ “physical and mental health”.

The investigation is being launched under a massive law known as the Digital Services Act (DSA), which is pushing the world’s biggest tech firms to do more to protect European consumers online.

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“We want to make sure Temu complies with the Digital Services Act, especially when it comes to ensuring that products sold on its platforms meet EU standards and do not harm consumers,” EU technology chief Margrethe Vestager said in a statement. he said.

The EU wants to know more about the systems Temu has in place to “limit the sale” of illegal products, as well as how the platform restricts the “re-emergence” of these products.

Temu will also need to explain what measures it has taken to address risks arising from its service, including game-like rewards programs.

Temu said he would cooperate with the EU.

A Temu spokesperson said: “Temu takes its obligations under the DSA seriously, continuously investing to strengthen our compliance system and protect consumer interests on our platform.” he said.

“We will fully cooperate with regulators to support our shared goal of a safe and secure marketplace for consumers,” the spokesperson said in a statement.

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Multiple probes

The Commission said the EU investigation will also look at Temu’s systems and how it recommends content and products to users, as well as whether the platform complies with its obligation to give researchers access to Temu’s public data.

Temu will also need to provide more details about the “parameters” of recommendation systems used by platforms to deliver more personalized content.

The EU emphasized that “the initiation of official proceedings does not prejudice the outcome” and that there is no deadline for the completion of the investigation.

Temu is among 25 “very large” online platforms that must comply with the DSA or risk fines of up to six per cent of their global turnover or even bans for serious and repeated infringements.

Other shopping platforms required to comply with the DSA include Chinese online retailer AliExpress and the US giant. Amazon and China-based Shein.

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Other DSA investigations have targeted AliExpress, X, the social media platform formerly called Twitter owned by tech billionaire Elon Musk, and Facebook. instagram It belongs to Meta.

Source: AFP