Temu is going to be investigated by the European Commission tech regulators.
The Chinese E-commerce company operated by PDD Holdings, is an online marketplace that offers extremely discounted products which are shipped from China directly to the consumers.
On Tuesday, October 29, the EU tech regulators said that they will be investigating Temu over the speculations that the company may be violating rules which are made to prevent the sale of illegal products, reported Reuters.
The organization will also pay special focus on the addictive services of the platform that include game-like reward programmes, and its systems to recommend purchases to users. If founded guilty, the company could face hefty fines.
"We want to ensure that Temu is complying with the Digital Services Act. Particularly in ensuring that products sold on their platform meet EU standards and do not harm consumers,” said Margrethe Vestager, executive vice president for the commission's Europe Fit for the Digital Age in the statement.
She continued to say that the authorities “will guarantee a level playing field and that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all."
Meanwhile, Temu has given a positive response to the investigation and has committed to cooperate with regulators.
"Temu takes its obligations under the DSA seriously, continuously investing to strengthen our compliance system and safeguard consumer interests on our platform," noted the company in its statement.
The E-commerce platform spokesperson also said that the company is on its way to join a voluntary EU initiative to step up against the sale of counterfeit products.
