sale of illegal products at gunpoint
Temu began its rollout in the European Union (EU) just under two years ago, but the Chinese-origin Amazon-rivaling platform is already under regulatory scrutiny. The European Commission (EC) has asked for information on mitigation measures taken “against the presence and reappearance of traders selling illegal products” We are faced with a formal movement that is supported by the Digital Services Act (DSA) and involves the submission of internal documents.
EC also seeks to collect information about the operation of product recommendation systems, as well as the processing of users’ personal data. We know Temu has until October 21st to comply with the order. Regardless of whether this step is completed, a number of possible measures will be taken. For example, authorities may impose fines for incorrect, incomplete or misleading information if documentation is presented with some of these characteristics.
Waiting for an answer Topic
If the company, backed by Asian giant PDD Holdings, the conglomerate responsible for e-commerce platform Pinduoduo, fails to respond within the deadline, it could face sanctions. periodic payment of fines. Temu, like other companies of its type, must comply with certain EU regulations. This is because it was designated as a Large Online Platform (VLOP) in May last year. However, Tem had to comply with the general DSA rules from February 2024.
Margrethe Vestager, who is completing her cycle as Competition Commissioner following the appointment of Teresa Ribera, indicated in X that the EC will evaluate Temu’s responses and determine next steps. “This may include launching a formal investigation under the Digital Services Act,” he said. Recall that in March this year, the EC initiated a formal procedure to assess whether AliExpress violated the DSA after requesting information about the alleged sale of counterfeit products.
We wrote the Topic. We will update this article when we receive a response.
Images | Topic | Sarah Kurfess
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