The European Union announced Friday that it is adding Chinese online retailer Temu to its list of platforms subject to the bloc’s highest level of digital scrutiny.
With over 45 million users, Temu is now classified as a “very large online platform” under the EU’s Digital Services Act (DSA), a comprehensive regulation aimed at cleaning up online platforms and ensuring the safety of internet users.
By September 2024, Temu must comply with the DSA’s strictest rules and obligations, including assessing and mitigating “systemic risks.”
“Temu must implement measures to address risks such as the listing and sale of counterfeit goods, unsafe products, and items that infringe on intellectual property rights,” stated the European Commission, the executive arm of the 27-nation bloc, in a press release.
To achieve this, the company could take steps like enhancing its user interface to improve reporting and detection of suspicious listings, upgrading its moderation processes to quickly remove illegal items, and refining its algorithms to prevent the promotion and sale of prohibited goods, the commission suggested.
Temu acknowledged the commission’s decision, stating, “We are fully committed to adhering to the rules and regulations outlined by the DSA to ensure the safety, transparency, and protection of our users within the European Union.”
Having only entered Western markets in the past two years, Temu has quickly gained popularity by offering inexpensive goods—from apparel to home products—shipped from China.
The EU’s list of the biggest online services requiring the toughest supervision since the DSA took effect last year already includes about two dozen tech names, such as Facebook, TikTok, YouTube, Instagram, Amazon, and Google Search.
Other online services operating in the EU must still comply with the law’s general requirements. Violations of the DSA can result in fines of up to 6% of a company’s annual worldwide revenue.
