Temu Faces EU Investigation Over Suspected Violations of Online Sales Regulations

Image of the Pinduoduo app. (Tang Shiyun / Dajiyuan)

People News — The European Commission is set to launch an investigation into the Chinese e-commerce platform Temu to assess whether it has violated regulations concerning the sale of illegal products online. This investigation could be a significant move by the EU to tighten its oversight of cross-border e-commerce platforms and combat counterfeit goods and illegal content. The following is a report compiled by Radio Free Asia’s reporter, Jing Wei.

According to sources cited by Bloomberg on Wednesday (October 30), the European Commission will investigate the Chinese e-commerce platform Temu to determine if it has breached regulations regarding the sale of illegal products online.

As reported by Radio Free Asia, Reuters stated that, under the Digital Services Act (DSA), the European Commission issued an information disclosure request to Temu on October 11, asking the platform to provide specific measures it has implemented to prevent the sale of illegal products, with a response deadline set for October 21. At the time, the European Commission indicated it would "determine next steps" based on Temu’s response.

In recent years, the European Commission has stepped up its regulatory efforts over internet platforms to protect user rights and maintain market order. The Digital Services Act, which took effect in 2023, establishes a range of strict compliance requirements for major tech platforms operating within the EU. In May of this year, the European Commission designated Temu as a “Very Large Online Platform” (VLOP) under the DSA, meaning the platform has more than 45 million active users in the EU market and therefore must meet stricter content regulation obligations, especially in the fight against illegal content and counterfeit goods. Platforms that fail to comply may face penalties under this act, including fines and restricted visibility, with fines reaching up to 6% of annual global revenue. For repeated severe violations, companies could face an outright ban on operating within the EU market.

The EU’s investigation into Temu also signals an intensifying regulatory stance on large cross-border e-commerce platforms. In recent years, multinational e-commerce platforms such as Amazon and eBay have faced various penalties for issues related to counterfeit products and insufficient user data protection.

The European Commission declined to comment on Bloomberg's report, and Temu’s spokesperson has not yet responded to media requests for comment.