Temu, Neglecting Illegal Product Sales? EU Likely to Investigate Legal Violations

The European Union (EU) is set to launch an official investigation soon into concerns that Chinese e-commerce company Temu is allowing the sale of illegal goods online, Bloomberg reported on the 30th (local time), citing multiple sources.

[Image source=Reuters Yonhap News]

According to the report, the European Commission will examine whether Temu, operated by Pinduoduo (PDD) Holdings, has violated regulations related to illegal activities online under the Digital Services Act (DSA). Under this law, online platforms with more than 45 million users within the region must take measures to prevent the spread of false and illegal content. If violations are confirmed, fines of up to 6% of global annual revenue may be imposed.

The investigation could be announced immediately. However, sources confirmed that the timing might be delayed due to the leadership transition within the European Commission.

Earlier, in October, the European Commission requested Temu to submit information on its measures to prevent the sale of illegal goods. Specifically, the Commission demanded detailed information and internal documents regarding the presence of sellers offering illegal products and measures to prevent recurrence. However, the materials submitted by Temu were unsatisfactory and failed to alleviate the EU's concerns, according to sources.

Temu did not respond to Bloomberg's request for comment. If the official investigation by the European Commission begins, Temu will have the right to propose countermeasures to avoid penalties such as fines.

Meanwhile, on the New York Stock Exchange that day, Pinduoduo's stock closed at $120.87 per share, down 3.5% from the previous session. The decline this year has exceeded 17%.

This content was produced with the assistance of AI translation services.