The European Union has demanded that the Chinese e-commerce platform Teum, operated by the Pinduoduo group, provide detailed information on the measures it has taken to prevent illegal goods from being traded on its online marketplace.
On Friday, the European Commission stated that it has issued a Request for Information (RFI) to Temu, the Chinese cross-border e-commerce platform, under the Digital Services Act (DSA), requesting detailed information and internal documents.
The Commission’s statement indicated that the RFI further requires Temu to provide more data and information on the measures it has taken to reduce the risk of the spread of illegal goods, as well as risks related to consumer protection, public health, and user welfare.
Additionally, the Commission has asked for detailed information on Temu’s recommendation system and the risks it poses to the protection of users’ personal data.
Temu is required to provide the requested information by October 21, 2024.
It is important to note that the EU’s request is an initial step and does not imply that Temu has engaged in any illegal behavior. The Commission will evaluate Temu’s response to determine the next course of action, including initiating formal investigation procedures under Article 66 of the DSA.
Furthermore, according to Article 74(2) of the DSA, the Commission may impose fines for providing inaccurate, incomplete, or misleading information.
If Temu fails to respond on time, the Commission may issue a formal decision requesting a response. In such a scenario, if a response is not provided within the deadline, there is a possibility of facing periodic fines.
Temu entered the EU market in April last year. In the six months leading up to March 31 of this year, the platform had approximately 75 million active monthly users across EU countries.
Under the provisions of the DSA, companies with over 45 million users are designated as Very Large Online Platforms (VLOP), and these platforms are required to take more measures to combat illegal or harmful content and counterfeit products on their platforms.
In May of this year, Temu was officially categorized as a Very Large Online Platform by the EU, joining companies like Amazon, Meta platforms, and TikTok in facing stricter regulatory requirements.