The European Commission has issued preliminary findings accusing Chinese e-commerce platform Temu of breaching the European Union's Digital Services Act (DSA) by failing to prevent the sale of illegal and non-compliant products within the Single Market.
Temu, which boasts nearly 94 million average monthly users across the EU, is designated as a Very Large Online Platform (VLOP) under the DSA. This classification subjects it to enhanced regulatory obligations, including stringent consumer protection measures.
According to a statement released on Monday, the Commission determined that Temu presents a high risk to European consumers, with evidence indicating widespread availability of illegal goods on the platform.
The investigation, formally launched in October, also raised concerns over the platform's business practices, including misleading discounts, fake reviews, lack of transparency regarding third-party sellers, and a design strategy that may exploit addictive user behaviors.
The Commission further emphasized that Temu is failing to comply with the EU’s product safety standards, thereby undermining consumer trust and the integrity of the digital Single Market.
Temu has been granted the opportunity to respond to the allegations. However, should the Commission uphold its findings, the company could face penalties of up to 6% of its global annual revenue.
A spokesperson for Temu stated that the company is cooperating fully with EU authorities. No final ruling has yet been made.
The Digital Services Act, which came into force to enhance accountability and consumer protection across major online platforms, represents a cornerstone of the EU’s digital governance strategy.
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