EU Commission opens investigation against TEMU

The EU Commission opened a formal investigation against TEMU on 31 October 2024 to determine the platform's compliance with the provisions of the Digital Services ACT (DSA).

Previously, the Commission had classified TEMU as a VLOP (Very Large Online Platform), which means that it had to comply with the strictest DSA requirements for the last 4 months. The Commission's decision follows a risk assessment sent to the Commission by TEMU in September 2024 concerning compliance.

According to the information available, the investigation aims to determine the extent to which TEMU is dumping products that would otherwise not be marketed in the EU. The investigation will also examine the extent to which TEMU's aggressive and addictive interface and marketing – including its game-like reward programs – are in line with the DSA and also the accessibility of the system through which TEMU recommends certain products to consumers and the absence of profiling.

Once the formal procedure has been launched, the Commission collects further data and can then apply non-compliance decisions or accept solutions offered by the TEMU, where appropriate. The DSA does not contain any provision on how long the procedure should be completed, as this depends largely on the company’s ability to cooperate and the complexity of the case.