Temu Required to Comply with Stricter EU Rules Due to User Volume

TapTechNews May 31 - According to a report by Reuters, the European Commission said this morning local time that Temu, the cross-border e-commerce platform under Pinduoduo, will have to comply with stricter EU online content rules due to its number of users exceeding a key criterion.

TapTechNews Note: Under the EU's Digital Services Act (DSA), companies with more than 45 million users are designated as very large online platforms (VLOP) and are required to take additional measures to combat illegal and harmful content as well as counterfeit and shoddy products on the platform. This requirement means that Temu under Pinduoduo will be classified in the same category as companies such as Amazon and TikTok.

Temu entered the EU market last April and as of the six months ending March 31 this year, its monthly active users in the EU were approximately 75 million on average. The EU executive branch said in a statement, After being designated as a VLOP today, Temu must comply with the strictest regulations under the DSA (Digital Markets Act) within four months after receiving the notice (that is, before the end of September 2024).

The obligations stipulated by the DSA for very large online platforms include assessing and reducing systemic risks associated with their services, such as the listing and sale of counterfeit goods, unsafe or illegal products, and items that infringe on intellectual property rights. If a company violates the relevant requirements of the DSA, it can be fined up to 6% of its annual global turnover.

Temu said in response, We are fully committed to complying with the rules and regulations stipulated in the DSA to ensure the safety, transparency, and protection of users within the European Union.