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Temu , the downhearted - monetary value Es - commerce marketplaceowned by Formosan online retail merchant Pinduoduo , is to face the European Union ’s strictest rulesafter authority designatedthe party a “ very large online platform ” ( VLOP ) under the Digital Services Act ( DSA ) .
The newscomes some two week afterEuropean consumer tribute grouping filed interconnected complaints against Temu over an allege raft of aver breaches relating to DSA , and a class after Temuopened its first office in the region . Temu afterwards went on topass 75 million usersin the EU , concord to some report , a figure that sits well above the EU ’s 45 million threshold for being assort as a VLOP .
Additional scrutiny
The general obligations set out under the DSAhave applied since February , but an extra readiness of more stringent rule came into forcelast August , initially impacting19 separate platformsdesignated as a VLOP or very prominent online hunt locomotive engine ( VLOSE ) . This deal intersection belonging to Alibaba , Alphabet , Amazon , Apple , ByteDance , Meta , Microsoft and Snap , among others . In December , anadditional three smut siteswere give VLOP status , while Temu ’s Taiwanese retail rivalShein was made a VLOPin April .
Temu is now the 24th company to face excess obligations under the DSA , meaning the company will face extra examination over its use of algorithms , AI , content ranking , testimonial tools and suchlike , while having to assess and mitigate any “ systemic peril ” that stem from Temu ’s service , including addressing imitative , illegal or unsafe products listed on its platform .
In mid - May , BEUC — the European consumer establishment representing 45 consumer protection groups across the bloc — filed a formal complaint against Temu while request that lawgiver indicate the platform as a VLOP . In bicycle-built-for-two , more than a dozen BEUC extremity organisation filed complaints with their national consumer auspices authority , accusing Temu of violate DSA .
And it seems the European Commission has listened .
While the additional rules that enforce to VLOPs have been obligate since last August , Temu will have until the remnant of September to comply due to a four - calendar month grace period given from the detail of notification — starting today .
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From that point , Temu will call for to work with the Commission and Irish Digital Services Coordinator — Temu ’s European HQ is in Dublin — to provide regular danger assessment reports , once at the start , and then on a annual basis proceed forward .
“ Temu acknowledges the European Commission ’s designation of our political platform as a Very Large Online Platform ( VLOP ) under the Digital Services Act ( DSA ) , ” a Temu interpreter said in a instruction issued to TechCrunch . “ We are fully committed to adhering to the rule and regularisation outlined by the DSA to ensure the rubber , transparency , and protection of our user within the European Union . ”
