The European Commission opened an investigation into Temu, alleging the Chinese-owned e-commerce platform sells illegal products and has an addictive design. File Photo by Will Oliver/EPA-EFE
Oct. 31 (UPI) — The European Commission opened formal proceedings Wednesday under the Digital Services Act against the Chinese-owned Temu e-commerce platform for allegedly selling illegal products and for having an addictive design.
“We want to ensure that Temu is complying with the Digital Services Act,” said Margrethe Vestager, executive vice president for the commission’s Europe Fit for the Digital Age, said in a statement. “Particularly in ensuring that products sold on their platform meet EU standards and do not harm consumers.”
She added that the commission’s enforcement “will guarantee a level playing field and that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all.”
A Temu spokesperson said in a statement that the e-commerce platform “takes its obligations under the DSA seriously, continuously investing to strengthen our compliance system and safeguard consumer interests on our platform.”
The spokesperson said Temu will fully cooperate with investigators.
The European Commission is investigating Temu’s systems designed to limit the reappearance of non-compliant traders selling illegal products in the EU.
The investigation is examining what the commission calls the addictive design of the Temu marketing platform, which includes game-like reward programs. The systems Temu is using are being probed to see if risks of the addictive design are being mitigated.
The commission said Temu’s addictive design “could have negative consequences to a person’s physical and mental well-being.”
It is reviewing Temu’s compliance with the EU’s Digital Services Act requirements on recommending products to users and on giving researchers access to Temu’s publicly accessible data.
There is no legal deadline for ending the investigation under the DSA. If the commission finds violations of the DSA, it can fine Temu as much as 6% of its annual global revenue.
“The duration of an in-depth investigation depends on several factors, including the complexity of the case, the extent to which the company concerned cooperates with the Commission and the exercise of the rights of defense,” the Commission said in a statement. “Moreover, the opening of formal proceedings does not prejudge its outcome or any other proceedings that the Commission may decide to initiate under other articles of the DSA.”
According to the Commission, Temu was designated a Very Large Online Platform under the DSA May 31. Temu said in September that it has 92 million monthly users in the EU.
