EU accuses online giant Temu over sale of 'illegal' products

Core Viewpoint - The European Union has accused Temu of violating digital regulations by failing to adequately assess the risks of illegal products on its platform [1][2]. Group 1: Regulatory Concerns - EU regulators believe Temu is not sufficiently protecting consumers from dangerous products, indicating a high risk of encountering illegal items on the platform [2]. - A mystery shopping exercise revealed that consumers are likely to find non-compliant products, including baby toys and small electronics [3]. - The EU criticized Temu's October 2024 risk assessment as inaccurate, relying on general industry information rather than specific details about its marketplace [4]. Group 2: User Engagement and Market Presence - Temu has rapidly gained popularity in the EU, boasting 93.7 million average monthly active users since its market entry in 2023 [3][6]. - The ongoing investigation is part of the Digital Services Act (DSA), which mandates that large tech firms enhance consumer protection and content policing [4]. Group 3: Potential Consequences - Temu will have the opportunity to respond to the EU's findings, but there is no specified timeline for the investigation's duration [5]. - If found in breach of regulations, Temu could face fines up to six percent of its total worldwide annual turnover and be required to implement changes to address violations [5]. Group 4: Broader Context of EU Regulations - The DSA represents the EU's efforts to impose stricter regulations on major tech platforms, which has faced criticism from the US government [8]. - The EU is also investigating other platforms, including AliExpress, Facebook, Instagram, and TikTok, under similar regulatory scrutiny [9].