The European Union has initiated a formal investigation into the Chinese e-commerce platform Temu, suspected of insufficiently preventing the sale of illegal products.
This probe, which could result in significant fines, examines Temu's compliance with the EU's Digital Services Act (DSA).
Despite entering the European market only last year, Temu boasts approximately 92 million monthly active users within the EU.
The investigation will assess not only the sale of illegal goods but also potential negative impacts on users' well-being due to the platform's addictive features.
Led by EU tech chief Margrethe Vestager, the probe will scrutinize Temu's systems to control illegal sales and prevent their recurrence.
Temu is cooperating with the EU, emphasizing its commitment to the DSA and consumer safety.
The study will also evaluate Temu's recommendation algorithms and their compliance with data access obligations for researchers.
Temu is among 25 major platforms that must adhere to DSA regulations or face hefty penalties.
Similar investigations are underway for other platforms like AliExpress, Amazon, Shein, and social media companies including X (formerly Twitter),
Facebook, and Instagram.