Popular Chinese e-commerce platform Temu could face stringent European Union content-moderation rules after it said it is visited by 75 million Europeans every month.
The controversial but booming Chinese company is the Western offshoot of Pinduoduo, one of China’s biggest e-commerce platforms. It has faced scrutiny for its opaque privacy and cybersecurity practices and has recently been under fire in Germany for misleading consumers.
While Temu was already falling under under some Digital Services Act rules, its new self-declared size could lead to new more stringent obligations under the supervision of the European Commission.
Online platforms with over 45 million users in the EU must carry out detailed external audits and risk assessments about their platforms and measures they take to limit the spread of illegal content like dangerous toys or fake luxury bags. Fines can go up to 6 percent of their global turnover.
The European Commission has to formally designate such very large online platforms, giving the companies four months to prepare for the strict rules. The European Commission did not immediately reply to a request for comment about whether it will designate Temu.
The EU institution is currently preparing to designate Chinese fashion platform Shein, with over 108 million European users.
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