
The European Union has launched an investigation into Temu, a Chinese e-commerce platform selling cheap clothes, home goods, and other products.
The EU this year added Temu to its list of especially large online platforms meriting scrutiny under its Digital Services Act. The law, which went into effect last summer, enables the bloc to hold online platforms accountable to EU privacy and safety laws under the threat of hefty fines. In this case, the EU is investigating Temu for three potential violations: failing to block "rogue traders" and noncompliant goods, using an addictive app design to gamify usage, and failing to disclose recommendation algorithms to researchers.
Temu entered Western markets in 2022, quickly amassing 92 million users in the EU and more than 100 million users in the US; its rise in popularity has, in part, prompted Amazon to develop a US-based competitor; a launch date for the platform has not been set.
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