EU tightens rules for popular platform Temu

The EU Commission has classified the Chinese trading platform Temu as a ‘very large online platform’ (VLOP) due to having more than 45 million monthly users. This new classification under the EU’s Digital Services Act (DSA) legislation entails stricter regulations for Temu, targeting harmful content and counterfeit goods. Failure to comply could result in fines up to six percent of its global turnover, which was 82 billion kroner in Q1 2024. Since entering the Danish market eight months ago, Temu quickly climbed to the top of online commerce. It became Denmark’s third most popular webshop in the first quarter of 2024, according to an analysis by Danish Industry. Temu is now the 24th platform categorized as a VLOP by the EU. The platform has been criticized for potentially harmful products and employing manipulative designs to induce purchases according to consumer organizations and the Danish Environment Minister.