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, TikTok, AliExpress 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.