bbieron@platformeconomyinsights.com

European Commission Issues Preliminary DSA Decision Against Temu

Jul 1, 2025

Report from EuroNews

In Brief – The European Commission has made a preliminary determination that Temu does not comply with the Digital Services Act (DSA), legislation enacted in 2022 to regulate how digital platforms address illegal and objectional content. Platforms with over 45 million active users in the EU are designated Very Large Online Platforms (VLOPs) and face the strictest standards and enforcement by the Commission itself. There are currently 25 VLOPs, including five online commerce marketplaces — AliExpress, Amazon, Shein, Temu, and Zalando. The Commission, which opened a review of Temu’s DSA compliance in October 2024, believes that the China-based marketplace does not do enough to stop the sale of illegal and unsafe products. The Commission will continue its investigation of other suspected DSA breaches, including concerns that it has a potentially addictive design, uses deceptive recommender systems, provides insufficient vendor information, and fails to give researchers appropriate access to platform data. Consumer advocacy groups in Europe have long complained about the sale of unsafe products on digital platforms, most recently focusing on Temu and Shein. A Temu spokesperson said the company would continue to “cooperate fully” with the Commission.

Context – Although the DSA was often described as a response to online hate speech, disinformation, and threats to children, the Commission always argued that the law was very clear and covers all platforms that expose their users to content which can be illegal, including online marketplaces for physical or digital goods, which could be dangerous, fraudulent, or illegal. Amazon and Zalando both objected to their designation and have challenged the Commission in court. The Commission is currently engaged in DSA investigations of X, Meta’s Facebook and Instagram, TikTokAliExpress and Temu. With three Chinese VLOPs facing DSA compliance investigations, commission officials have a talking point to use with critics who argue that their big tech regulations are used to discriminate against US internet companies.

View By Monthly
Latest Blog
US Supreme Court Soundly Rejects Broad ISP Liability for User Piracy

Report from the New York Times In Brief – The Supreme Court has unanimously ruled that Cox Communications cannot be held liable for copyright infringement committed by its users, even if the company knows some customers engage in piracy and yet it does not cut them...

Tech Trade Group Challenges Chicago’s Social Media Tax

Report from the Chicago Sun-Times In Brief – NetChoice, a digital company trade group, is suing to block the City of Chicago’s new social media tax, arguing it violates the First Amendment and the federal Permanent Internet Tax Freedom Act (PITFA). The new tax extends...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required