European Commission is investigating Chinese e-commerce giant

Temu will be investigated by European Commission technology regulators.

The Chinese E-commerce company operated by PDD Holdings is an online marketplace that offers deeply discounted products shipped directly to consumers from China.

On Tuesday (October 29), EU tech regulators said they would investigate Temu over speculation that the company may be violating rules put in place to prevent the sale of illegal products. Reuters.

The organization will also focus specifically on the platform’s addictive services, which include game-like reward programs, and systems that offer purchase recommendations to users. If found guilty, the company could face heavy fines.

“We want to make sure that 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,” said Margrethe Vestager, the Commission’s vice-president for Europe for the Digital Age. in the statement.

He went on to say that authorities will “guarantee a level playing field and that every platform, including Temu, will fully respect the laws that keep the European market safe and fair for everyone.”

Meanwhile, Temu responded positively to the investigation and pledged to cooperate with regulators.

“Temu takes its obligations under the DSA seriously, continuously investing to strengthen our compliance system and protect consumer interests on our platform,” the company said in its statement.

The e-commerce platform spokesperson also said that the company is on track to join a voluntary EU initiative to take steps against the sale of counterfeit products.