The e-commerce platform of Temu was officially recognised by the European Commission as a subject of the Digital Services Act (DSA), which means that it is essential to comply immediately with European regulations, informs Reuters.
VLOP position and fresh responsibilities
This group of Chinese PDD Holdings was classified as a very large online platform (VLOP), which requires it to meet the most stringent requirements of DSA. The company will request to put in place effective mechanisms to prevent illicit trade, increase the transparency of algorithms and aid users study irregularities.
Decision preceded by the EC investigation
The European Commission has initiated an investigation into suspicions that this does not meet the basic obligations of the DSA. This included the deficiency of effective tools for detecting and blocking prohibited products in the Union as well as opaque trading conditions on the platform. The EC decision was based on data collected from the company itself and the supervisory authorities of the associate States.
Another Chinese platform under supervision
Temu is the second after AliExpress the Chinese e-commerce platform to be placed on the VLOP list. From now on, it will gotta comply with the requirements within 4 months, otherwise it will be subject to sanctions, including advanced fines and possible restrictions on the EU market.
