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EU Continues Scrutiny of E-commerce Platform TEMU
Brussels is pressing forward with its investigation into the e-commerce platform TEMU, an inquiry initiated in October 2024.The probe encompasses allegations of “addictive design” within the TEMU request, citing features such as rapid promotions and integrated games, alongside concerns regarding the transparency of its purchasing recommendations. TEMU, which has seen significant growth across Europe due to its competitive pricing strategy, is the international iteration of the Chinese e-commerce giant Pinduoduo, established in 2015. The platform offers an extensive array of products, including apparel, toys, home decor, tools, and electronics.
In May 2024, European consumer advocacy groups lodged a formal complaint against TEMU, asserting that the platform encourages excessive spending by users. In response, the company stated in October that it had implemented “significant measures” and was “refining” its practices to align with the European Union’s Digital Services Act (DSA). Despite its relatively recent market entry in 2023, TEMU has garnered substantial popularity within the EU, boasting an average of 93.7 million monthly active users across the 27 member states.
In parallel efforts to safeguard consumers from possibly harmful content or products, the EU is conducting other DSA investigations targeting platforms such as the chinese online retailer Aliexpress, as well as social media networks including Facebook, Instagram, X (formerly Twitter), and TikTok. The European Union is also addressing the substantial volume of low-cost parcels entering its territory. A proposal currently under consideration aims to introduce a €2 tax per package. Last year, the EU received 4.6 billion such parcels, averaging over 145 per second, with 91% originating from China.
