The EU launched a formal investigation Thursday into Chinese-founded e-commerce platform Temu on suspicion the site is doing too little to stop the sale of illegal products, in a probe that could lead to large fines.
Extremely popular in the European Union despite having entered the continent’s market only last year, Temu has on average around 92 million monthly active users in the bloc.
The investigation will also look at dangers from the platform’s “potentially addictive design” that could have “negative consequences” on users’ “physical and mental well-being,” said the European Commission, the EU’s powerful digital watchdog.
The probe is being launched under a mammoth law known as the Digital Services Act (DSA) that forces the world’s largest tech firms to do more to protect European consumers online.
“We want to ensure that Temu is complying with the Digital Services Act. Particularly in ensuring that products sold on their platform …