EU to investigate China’s Temu over suspected illegal products and ‘addictive’ platform

If found guilty, the Chinese online marketplace could face fines amounting to 6 per cent of annual global revenue

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The European Commission is assessing the addictiveness of Temu’s platform, including its “game-like reward programmes”. Photo: Shutterstock

Published: 7:24pm, 31 Oct 2024Updated: 9:53pm, 31 Oct 2024

The European Union has launched an investigation into Chinese online marketplace Temu, under suspicions that it is not cracking down on the sale of illegal products and that the platform’s design is “addictive” for users.

The investigation comes under the European Commission’s Digital Services Act, a powerful instrument that gives it sweeping powers over online businesses operating in the 27-member bloc.

If found guilty, Temu could face fines amounting to 6 per cent of its annual global revenue.

The commission has asked Temu at several points in recent months to supply more information about its efforts to stop the sale of illegal items on the platform. It also asked for information about “risks relating to consumer protection, public health and users’ well-being”.

Based on Temu’s responses, the commission decided to launch an in-depth investigation.

The investigation will assess Temu’s efforts to “limit the sale of non-compliant products” in the EU, including efforts to limit the “reappearance of previously suspended rogue traders” who have sold illegal items in the past.