EU Launches Probe Into Temu Over Alleged Sale Of Illegal Goods

The European Union on Monday accused Chinese-founded e-commerce platform Temu of violating the bloc’s digital safety regulations by failing to properly assess the risks posed by illegal products sold on its site.

According to the European Commission’s preliminary findings, Temu has not done enough to protect consumers in the EU from potentially dangerous or non-compliant items. The commission cited a “mystery shopping” investigation that uncovered a high likelihood of customers encountering illegal products on the platform, including unsafe baby toys and small electronics.

“Evidence showed that there is a high risk for consumers in the EU to encounter illegal products on the platform,” the Commission stated.

Despite entering the European market only in 2023, Temu has quickly grown in popularity, now boasting an average of 93.7 million monthly active users across the EU’s 27 member states.

The EU found fault with Temu’s October 2024 risk assessment, calling it “inaccurate” and overly reliant on generic industry data rather than specifics about the platform’s own operations.

The probe is being conducted under the EU’s Digital Services Act (DSA)—a sweeping law aimed at holding major tech companies accountable for consumer safety and online content regulation. Temu is among several global platforms being scrutinized under the DSA.

Temu will have an opportunity to respond to the Commission’s findings, though there is no set timeline for the investigation’s conclusion. If found in breach, the company could face fines of up to 6% of its global annual revenue and be required to make operational changes.

In addition to concerns over illegal products, the ongoing investigation is also looking into Temu’s use of potentially addictive design features that may negatively affect users’ mental and physical health, as well as how the platform’s algorithms recommend products and content.

Wider Tech Clampdown

The DSA is a key component of the EU’s broader strategy to rein in the power of Big Tech and ensure stronger consumer protections. It imposes stricter obligations on the world’s largest platforms to manage harmful content and unsafe products.

However, the law has faced criticism abroad—particularly from the United States. Last week, the Republican-led Judiciary Committee in the U.S. House of Representatives condemned the DSA in a report, labeling it a “foreign censorship threat.”

Jim Jordan, the committee’s chairman and a close ally of former President Donald Trump, is scheduled to meet EU tech sovereignty chief Henna Virkkunen in Brussels on Monday.

Temu is not alone in facing DSA scrutiny. Other investigations are underway into Chinese e-commerce platform AliExpress, as well as social media giants Facebook, Instagram, X (formerly Twitter), and TikTok.

Meanwhile, EU officials are also seeking to crack down on the flood of low-cost packages entering the bloc, the vast majority of which originate from China. A new proposal is being considered to introduce a flat €2 fee per parcel to curb the influx. In 2024 alone, 4.6 billion such packages were delivered to the EU—equivalent to more than 145 per second—with 91% of them coming from China.

Source: AFP