Temu: EU launches investigation into the distribution of illegal products online

The is to launch an investigation into the , due to concerns that it does not manage to limit the sale of illegal products online, to an investigation that could lead to high fines for the e-commerce service. The EU’s highest executive body, the Commission, will initiate a formal procedure against the Temu platform – managed by Chinese interests PDD Holdings – to investigate whether it violates rules against illegal online activities, according to Bloomberg sources. The investigation could be announced immediately, but the timetable could also be differentiated, as the Commission is preparing to change its political leaders. European regulators have attacked high-tech companies in an effort to limit web damage. According to the EU Digital Services Act, online platforms with more than 45 million users in the region must take steps to stop the spread of misinformation and illegal content – including the supply of products that are illegal in the EU – or risk fines of up to 6% of their global annual revenue. Following the official EU investigation, Temu has the right to propose countermeasures to address the Commission’s concerns and prevent possible sanctions. The investigation follows the EU’s request of 11 October that Temu share information on how it treats counterfeit or unsafe products on its market. At that time, the Commission stated that it had requested ‘detailed information and internal documents on the restrictive measures taken against the presence and recurrence of traders selling illegal products’ to Temu.