The European Commission determined that the Chinese online shopping platform Temu is not doing enough to prevent the sale of unlawful goods.
According to the Commission's early findings, the Chinese internet retailing behemoth was breaking the Digital Services Act (DSA).
According to evidence, consumers in the EU are at significant risk of purchasing unlawful items via the platform, according to a press release on Monday.
Temu is classed as a very big online platform under the DSA. The world's largest tech businesses must do more to safeguard European users online. Temu has around 94 million average monthly active users in the European Union.
Temu under investigation
This comes after the European Commission opened a formal probe into Temu's corporate practices in October.
Temu is accused of exporting goods to the EU that do not adhere with the bloc's regulations, according to a long list of complaints from the EU executive arm.
We shop online because we believe that items marketed in our Single Market are safe and conform with our regulations. In our early view, Temu falls short of evaluating hazards for its consumers to the standards stipulated by the Digital Services Act, according to Henna Virkkunen, European Commission Vice President.
The Commission also accused the online retailer of providing bogus discounts to consumers, publishing fake reviews, failing to give adequate supplier information, and designing an addictive app.
Temu can reply to the claims, but if concerns linger, the EU may announce a DSA infraction and levy a penalty of up to 6% of its worldwide annual revenue, though no final decision has been made.
According to a Temu representative, the business would continue to completely collaborate with the Commission.
Consumer safety online is non-negotiable in the EU, and our laws, including the Digital Services Act, are the basis for increased protection online, according to Virkkunen.
