The European Commission has decided to open an investigation into the Chinese giant Temu to assess whether it has violated the European Digital Services Act (DSA) regarding the sale of illegal products and the potentially addictive design of the service. The investigation will also cover the systems used by Temu to recommend purchases to users and the access to data by researchers, clarified the European Executive.
Specifically, the systems that Temu has implemented to limit the sale of non-compliant products in the European Union will be examined, without focusing on a specific type of product, as explained by the spokesperson for the European Commission's Internal Market, Thomas Regnier.
Furthermore, the European Commission also wants to analyze in detail the risks associated with the addictive design of the service, including game-like reward programs, to assess how Temu has worked to mitigate such risks. Brussels will also review Temu's compliance with the DSA obligations related to the recommendation of content and products, including the disclosure of key parameters and the possibility of access without profiling.
If it is determined that Temu's activities are contrary to the DSA, the Chinese platform could violate five articles of European legislation and face fines of up to 6% of its global annual revenue. Online companies with more than 45 million users in the EU must take measures to stop the spread of misinformation and illegal content under the DSA.
The decision to open this priority investigation follows preliminary analyses of the risk assessment report provided by Temu and responses to formal information requests. The European Commission will continue gathering evidence and taking necessary actions, but no specific deadline has been set to conclude the thorough investigation, which will depend on various factors, including the company's cooperation and the degree of complexity of the case.
