EU includes Chinese online retailer Temu in highest level of digital scrutiny list
- The European Union adds Chinese online retailer Temu to its list of platforms under strict digital scrutiny.
- Temu faces EU's highest level of digital scrutiny, reflecting growing concerns over online platforms.
- This move signals heightened digital regulation for global e-commerce companies in the EU.
The European Union added Chinese online retailer Temu to its list of platforms facing high digital scrutiny. This is because Temu has over 45 million users, making it a "very large online platform" under the EU's Digital Services Act. The Act aims to clean up online platforms and ensure internet users' safety. By September 2024, Temu must follow the Act's strict rules, including managing "systemic risks." Temu needs to take steps to address risks like selling counterfeit goods, unsafe products, and items violating intellectual property rights. The European Commission stated that Temu could improve by enhancing its user interface for better reporting, removing illegal items quickly, and refining algorithms to prevent selling prohibited goods. Temu agreed to comply with the rules to ensure user safety within the EU. Temu recently expanded into Western markets, offering affordable goods shipped from China. The EU's list of online services under tough supervision includes tech giants like Facebook, TikTok, YouTube, Instagram, Amazon, and Google Search. All online services in the EU must follow the law's requirements, with fines of up to 6% of a company's global revenue for violations.