Online marketplace
EU takes action against low-cost retailer Temu
Many consumers are lured by the low prices of Asian shopping portals such as Temu. But some platforms are controversial.
The European Commission suspects the Chinese online marketplace Temu of violating EU law. The Brussels authority initiated a formal procedure to check whether the platform was taking sufficient action against the sale of illegal products, it said in a statement. In addition, the potentially addictive design of the online marketplace should be examined.
The commission said certain rogue traders would reappear on the platform after being blocked. There is also a risk that the platform will become addictive through reward programs. This could have negative consequences for a person’s physical and mental well-being. The commission now wants to continue collecting evidence, for example through interviews.
Brussels has also taken action against other platforms
In a preliminary investigation, the Brussels authority had already requested detailed information from Temu about the measures taken to prevent the re-emergence of traders selling illegal products on its online marketplace. The Commission also wanted information on how the risks to consumers would be mitigated.
Temu said in response to the EU proceedings that it takes its obligations seriously and is continually investing to strengthen its regulatory system and protect consumer interests on its platform. “We will cooperate fully with regulators to support our shared goal of a safe and trustworthy marketplace for consumers,” the company continued.
The Brussels authority had already opened similar proceedings against X (formerly Twitter), Tiktok and AliExpress. Large online platforms are obliged by a new EU law on digital services (DSA) to take strict action against illegal content online.
Temu is very popular in Germany
After a year and a half on the market, Temu is already one of the largest online retailers in Germany. According to a study by Consumer Panel Services GfK, which is part of the opinion research institute YouGov, the shopping portal landed in sixth place among the top online retailers in terms of the number of orders in the first half of 2024.
However, sales representatives, politicians and consumer advocates criticize, among other things, product quality, unfair competition conditions and a lack of controls (the star reports). The platform rejects such allegations.
The Brussels trial against Temu comes at a time when economic tensions with China are rising. EU additional tariffs on electric cars imported from China have been in effect since Wednesday. Before the EU Commission’s decision, a sufficiently large majority of EU states voted in favor of the punitive tariffs at the beginning of the month. Germany voted against the measure, fearing a major new trade conflict and possible retaliation against German manufacturers.
DPA
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Source: Stern
