The European Commission announced on Friday that Temu must adhere to stricter EU online content rules after its user numbers surpassed a critical threshold. Temu, a fast-fashion e-commerce retailer under PDD Group (PDD.O), now joins a category that includes Amazon, Meta Platforms and TikTok.
The European Union’s Digital Services Act (DSA) classifies companies with over 45 million users as very large online platforms (VLOPs). These platforms are required to take stronger measures against illegal and harmful content, including counterfeit products. Since entering the EU market in April last year, Temu averaged about 75 million monthly active users in the EU for the six months ending March 31, 2024.
“Following today’s designation as a VLOP, Temu will have to comply with the most stringent rules under the DSA within four months of its notification, which is by the end of September 2024,” the European Commission, acting as the EU tech regulator, stated.
The DSA mandates that VLOPs assess and mitigate systemic risks related to their services, such as the sale of counterfeit, unsafe, or illegal products and items that infringe intellectual property rights.
Temu affirmed its commitment to the DSA, stating, “We are fully committed to adhering to the rules and regulations outlined by the DSA to ensure the safety, transparency, and protection of our users within the European Union.”
Violations of the DSA can result in penalties of up to 6% of a company’s global annual turnover.
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