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Chinese language on-line retailer Temu can be investigated for whether or not it might have damaged EU know-how guidelines towards promoting unlawful merchandise, EU know-how regulators mentioned on Thursday, in a transfer that would result in hefty fines for the corporate.
The EU investigation may even concentrate on the doubtless addictive design of Temu’s service, together with its game-like reward applications and programs for recommending purchases to customers.
The European Fee has launched its investigation below the Digital Companies Act (DSA), which requires very giant on-line platforms equivalent to Temu to do extra to sort out unlawful and dangerous content material on their platforms, following complaints from the pan- European client group BEUC and 17 of its nationwide members.
Temu, which has 92 million customers within the 27-nation European Union, is a part of the Chinese language e-commerce large PDD corporations.
The EU know-how enforcer may even examine whether or not Temu complies with the DSA obligation to offer researchers entry to its publicly out there knowledge.
“We wish to make sure that Temu complies with the Digital Companies Act. Specifically by guaranteeing that merchandise offered on their platform adjust to EU requirements and don’t hurt customers,” mentioned EU antitrust and know-how chief Margrethe Vestager mentioned in a press release.
Temu could possibly be fined as a lot as 6% of its international turnover if discovered responsible of breaching the DSA.
