EU Requests Temu, Shein to Prove Compliance With Services Act

EU Antitrust Officials Scrutinize Chinese Online Retailers Temu and Shein

European Union antitrust authorities have requested that Chinese e-commerce platforms, Temu and Shein, demonstrate their adherence to the bloc’s stringent regulations concerning technology companies, particularly focusing on the protection of minors.

According to a statement released on Friday, the companies have been instructed to provide detailed information on their compliance with the Digital Services Act by July 12. The European Commission will evaluate the submissions and consider subsequent actions, including the possibility of launching a formal investigation.

Ensuring Consumer Safety

Among other concerns, Temu and Shein are required to illustrate how they safeguard European consumers from illegal products. This inquiry is following a complaint lodged against these online platforms by consumer advocacy groups.

Regulations and Compliance

The Digital Services Act (DSA) of the EU enforces rigorous rules that aim to curtail the dissemination of misinformation on major online platforms. These regulations apply to platforms with an active user base exceeding 45 million people. This move signifies the EU's ongoing commitment to hold large digital platforms accountable for the content and services they provide.

Global Presence and Market Moves

Temu, a subsidiary of PDD Holdings Inc., rose to prominence in the U.S. following an extensive marketing campaign linked to the Super Bowl in February. Meanwhile, online fashion retailer Shein, which had previously eyed an initial public offering in the U.S., has pivoted its focus to going public in London.

With these recent developments, the spotlight is on how these Chinese online giants will respond to the EU's demand for transparency and adherence to its digital regulations. The outcome of this scrutiny could set a precedent for other international platforms operating within the European market.