China’s biggest online shopping website Temu to face EU’s toughest security law

Chinese online shopping giant Temu is reportedly set to face Europe’s tough digital security law. According to a report in news agency AP, European Union is placing Chinese online retailer Temu under stricter oversight. With a user base exceeding 45 million, Temu falls under the EU’s Digital Services Act (DSA) classification of “very large online platform.” The DSA aims to create a safer online environment for users.
By September 2024, Temu will need to adhere to the DSA’s most stringent regulations. These include identifying and mitigating “systemic risks” such as the sale of counterfeit goods, unsafe products, and intellectual property violations.

EU’s big suggestions to Temu

The EU suggests Temu improve its user interface to facilitate user reporting of suspicious listings. Additionally, Temu should strengthen its moderation procedures for faster removal of illegal items and refine its algorithms to prevent the promotion and sale of prohibited products.
Temu acknowledged the EU’s decision and expressed commitment to following the DSA’s regulations. Their focus, according to a company statement, is on ensuring user safety, transparency, and protection within the EU.
Temu, a recent entrant in Western markets, has gained popularity for offering affordable goods shipped from China. The company joins established tech giants like Facebook, TikTok, YouTube, and Amazon on the EU’s list requiring the highest level of supervision. While not subject to the same intense scrutiny, all online services operating in the EU must still comply with the DSA’s general requirements. Violations can result in substantial fines of up to 6% of a company’s global annual revenue.