
The European Union has initiated a formal investigation into Temu under the Digital Services Act (DSA). The Commission’s concerns focus on the sale of potentially illegal products, addictive design practices, and transparency issues in the Chinese marketplace’s recommender systems.
If violations are confirmed, Temu’s parent company Pinduoduo could face fines up to 6% of its annual global turnover. The investigation comes shortly after Temu’s designation under the DSA’s strictest rules in May.
Temu has responded by pledging full cooperation with regulators and expressing commitment to strengthening its compliance system. The company is also in talks to join the Commission’s initiative against counterfeit goods online.