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European Commission Makes Preliminary Findings Regarding Temu Under the Digital Services Act

The European Commission (“Commission”) has made preliminary findings regarding the online marketplace Temu under the Digital Services Act (“DSA”), on the grounds that the risks associated with the circulation of illegal products have not been adequately assessed.

In this context:

  • The increasing presence of unsafe, counterfeit or non-compliant products offered on the Temu platform poses serious risks to consumer health, the environment, and fair competition within the Digital Single Market.
  • In a mystery shopping exercise carried out by the Commission, it was found that certain products, such as baby toys and small electronic devices that do not meet applicable standards, were readily accessible to consumers via the platform.
  • The risk assessment report submitted by Temu in October 2024 was found to be based on general sectoral data and lacked concrete, platform-specific information.
  • It has been assessed that this situation may have contributed to the inadequacy of the measures required to prevent the dissemination of illegal products.
  • The Commission is also continuing its investigation into additional potential violations, including:
    • The effectiveness of mitigation strategies,
    • The use of addictive design features,
    • The transparency of recommendation systems, and
    • The availability of data for researchers.
  • The investigation is conducted in coordination with national authorities and other EU-level initiatives.

Conclusion:

  • This finding is preliminary and does not predetermine the outcome of the investigation.
  • The provider will have the opportunity to respond in writing and examine the Commission’s case file.
  • If confirmed, the Commission may issue a non-compliance decision under Article 34 DSA, which could include:
    • A fine of up to 6% of the provider’s global annual turnover,
    • Corrective orders, and
    • An enhanced supervision period to ensure compliance.

You can access the full text of the press release published by the Commission here.

Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr

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