Temu Joins Shein, Amazon Under Strict EU Digital Rules

The European Commission has designated Temu a major online platform, similar to Shein and Amazon, requiring compliance with the EU's stringent Digital Services Act.

Stringent EU Regulations for Temu

According to Reuters, the European Commission said on Friday that Temu will have to follow more rigid EU rules for online content because it has more users than a key criterion. This puts the fast-fashion e-commerce store owned by the PDD Group in the same group as Amazon, Meta Platforms, and TikTok.

The Digital Services Act (DSA) of the European Union says that companies with more than 45 million users are "very large online platforms" (VLOPs) and need to do more to protect their users from damaging and illegal content and fake goods.

"Following today's designation as a VLOP, Temu will have to comply with the most stringent rules under the DSA within four months of its notification (that is by the end of September 2024)," the EU executive, which acts as the EU tech regulator, said in a statement.

Temu came to the EU market in April of last year. In the EU, it had about 75 million active users every month for the six months ending March 31, this year.

"We are fully committed to adhering to the rules and regulations outlined by the DSA to ensure the safety, transparency, and protection of our users within the European Union," Temu responds.

Non-compliance with the DSA can have severe financial implications. Companies that violate these regulations risk losing up to 6% of their global yearly sales.

Shein's Regulatory Deadline Nears

Shein is also having the same problems. Last month, the commission told Shein that it had to follow the tightest rules by August because it has more than 45 million users in Europe.

Furthermore, the Chinese fast-fashion was compelled to provide annual risk assessment studies examining potential harm to consumers, particularly children.

Photo: Temu/YouTube Screenshot