Temu, the popular Chinese e-commerce platform and managed by PDD Holdings, has burst onto the European market, attracting millions of users thanks to its aggressive prices and endless advertising campaignsHowever, this accelerated growth has raised the attention and alarms of European regulators, who are now closely examining its operations.
The European Commission has placed Temu under the microscope after detecting possible serious breaches of the Digital Services Act (DSA), a key regulation that governs digital commerce and requires large platforms to guarantee consumer safety, transparency in their algorithms, and effective control over the sale of illegal or unsafe products.
The formal investigation process began At the end of last year, after Temu was found to meet the requirements to be considered a “Very Large Online Platform” (VLOP), a title that entails reinforced obligations and greater scrutiny by European authorities. According to the Commission, Temu's risk assessment was insufficient, imprecise and based on generic industry data, rather than real, concrete information about what is happening in its digital ecosystem.
One of the most worrying aspects identified by the EU is the presence and potential proliferation of illegal, unsafe, or mislabeled products on the platform. For example, cases of baby toys and electronic devices that do not meet European standards, which could put the health and safety of consumers at risk.
In addition, among the tests carried out was an exercise in “mystery shopping” which showed how easily any European user could come across non-compliant, counterfeit or even dangerous items. Customs authorities and surveillance agencies Nationals also participated in the research to reinforce the conclusions.
Lack of control and transparency under scrutiny
The Commission has not only questioned Temu's ability to control the products sold on its digital storefront. It has also focused on gaps in the traceability of traders and lack of clear measures to prevent unauthorized sellers distribute potentially dangerous items.
These allegations are compounded by other concerns, such as the possible use of addictive designs and mechanics (flash sales, gamified systems and aggressive promotions) that encourage compulsive consumption, the lack of transparency in recommendation algorithms and the existence of deceptive trade practices such as unreal discounts or manipulated reviews and ratings that can distort user perception.
The Commission highlights in its preliminary conclusions that Online consumer safety is non-negotiable in the community territory, inviting Temu to review its file, submit written allegations and adopt corrective measures urgently.
Economic sanctions and reinforced supervision
If the provisional findings are confirmed, the The platform would face a penalty of up to 6% of its global annual turnover., an amount that could reach several billion euros given the size of the parent company. Furthermore, Brussels could force Temu to take immediate measures to correct the identified deficiencies and impose a cooling-off period. reinforced supervision to ensure compliance with the new obligations.
Along with the investigation into the sale of illegal products, The European Commission also analyses other aspects, such as the protection of personal data, access to information for researchers, and the regulation of online advertising, all with a view to ensuring both security and fairness in the European single market.
Temu, for his part, has responded through spokespersons with cautious messages, reaffirming his commitment to fully cooperate and, if necessary, implement the corrections requested by the European authorities.
How does this affect the consumer?
For platform users, The European warning is clear: Although low prices may be tempting, The origin and safety of many products is not always guaranteed.. Buyers may be exposed to counterfeit or unsafe items, and the EU has emphasized the importance of consumers prioritizing traceability and regulatory compliance over flashy offers.
In this context, the Temu investigation is not an isolated case. Other major international platforms, such as AliExpress or Meta, have also gone through or are currently going through similar regulatory processes, demonstrating the Brussels' growing interest in online consumer protection against technological giants of non-European origin.
Temu's situation reflects the new approach of the European Union Regarding the oversight of digital commerce, establishing that operating in the single market entails clear and non-negotiable responsibilities. We will need to keep an eye on Temu's response and possible reforms to its platform, which will affect both European sellers and consumers.