European Commission opens formal proceedings against Temu
The European Commission has opened formal proceedings against Chinese internet sales platform Temu, it announced in a press release on Thursday. The Commission wants to check whether the platform is in breach of the Digital Services Act (DSA), which was implemented earlier this year.
The DSA aims to bring online platforms into line with European law. The companies behind the platform have to make sure that they deal with illegal content, reduce misinformation and improve the digital rights of their users.
As a platform with over 45 million monthly users in the EU, Temu is classified as a very large online platform under the DSA. This means it has to comply with stricter rules than smaller platforms.
Illegal products and addictive design
The European Commission said on Thursday that it is investigating whether Temu is in breach of the DSA. The Commission is concerned about the sale of illegal products, the potentially addictive design of the service, the systems that recommend purchases and the access to data for researchers.
According to EU Competition Commissioner Margrethe Vestager, the EU wants to ensure that Temu complies with the DSA and "in particular that the products sold on its platform comply with EU standards and do not harm consumers," the Commission's press release states.
If the Commission finds that Temu is in breach of the DSA, the company could face a fine of up to 6 per cent of its annual turnover, according to financial news agency Bloomberg. There is no set end date for the investigation.
Consumer complaints
Temu has been accused of wrongdoing several times this year. In May, European consumer organisation BEUC filed a complaint against Temu, accusing it of providing incomplete information about its products and using 'dark patterns', manipulative practices designed to get consumers to buy or pay more, while US consumers filed a complaint about "dangerous malware and spyware" in the app.
PHOTO: © ANP / Hollandse Hoogte / Kim van Dam
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