The European Union (EU) has officially started an investigation into Temu, a Chinese-based online shopping platform, amid concerns it might be breaking some big new rules about online safety. Temu, a low-cost shopping app with the slogan “Shop Like a Billionaire,” has quickly become popular across Europe. From gadgets to cosmetics, it offers almost everything you can think of, all at very low prices. However, the EU believes Temu might be allowing some products that shouldn’t be there, including unsafe items and even counterfeit goods.

Why the EU Is Concerned About Temu

The investigation launched by the European Commission aims to determine if Temu is failing to comply with the Digital Services Act (DSA). This law, put in place recently, ensures that online platforms like Temu, as well as giants like Facebook, Google, and Amazon, follow strict rules to keep consumers safe. According to the EU, Temu hasn’t set up strong enough checks to prevent banned sellers from coming back to the platform and re-listing products. So, even if a harmful item is removed, it could be re-listed within days by the same or similar sellers.

EU officials are especially worried about dangerous products like counterfeit items, unapproved medicines, and unsafe toys being sold on Temu. Countries like Germany, Denmark, and Ireland have raised concerns about these products showing up, and they fear that Temu’s controls are not strong enough to prevent this.

A senior official from the EU stated, “We suspect Temu hasn’t set up effective controls to watch what’s sold on their platform. Many European authorities have raised these concerns, but it doesn’t seem like enough action has been taken to prevent the selling of dangerous items.”

Addictive Design and Game-Like Features

Another issue that caught the EU’s attention is Temu’s approach to engaging its users. The app uses a game-like design that rewards users for interacting more, which can encourage excessive shopping. The EU is concerned that Temu’s platform design might lead some users to overspend or even become addicted to shopping. If these suspicions are confirmed, Temu could face serious fines.

Meeting EU Standards – The Demand for Fairness and Safety

Margrethe Vestager, a high-ranking official at the European Commission who oversees digital regulation, commented on the investigation, saying, “We want to make sure that Temu is following the DSA rules and that every product sold meets EU standards to protect consumers. This investigation is also about ensuring fair competition in our market.”

The investigation doesn’t mean Temu is guilty, though. The European Commission is still in the early stages of looking into the issues, and officials say they’ll be careful about drawing any conclusions. Temu has been responsive to the EU’s questions so far, even replying “within minutes,” according to officials.

A Growing Giant: Temu’s Expansion in Europe

Temu has gained a lot of users very quickly since launching in Europe in 2023. Just in April, it had 75 million users, and by September, that number rose to 92 million. With prices that are hard to beat, it’s become a popular alternative to sites like Amazon, especially for young shoppers looking for good deals. The platform sells almost everything—from cosmetics to home furnishings—and it all comes directly from China.

Still, some consumer advocacy groups, like the European Consumer Organisation (BEUC), argue that Temu doesn’t do enough to keep its customers safe. BEUC filed a complaint in May, claiming that Temu violates the DSA by failing to provide important details about its sellers. According to Fernando Hortal Foronda, a digital policy officer at BEUC, “There are many issues we’ve identified with Temu, from unsafe products to designs meant to trick shoppers. This investigation by the EU is an important first step.”

Legal Trouble Beyond the EU

Concerns about Temu aren’t limited to Europe. In the UK, the consumer rights group “Which?” praised the EU’s investigation and suggested that similar actions should be taken in Britain. Currently, weak consumer protection laws mean that Temu and other platforms aren’t responsible if unsafe products are sold by third parties on their sites. “The government needs to make online marketplaces legally responsible for unsafe items,” said Rocio Concha from Which? She also believes that stricter laws would give regulators the power to issue large fines for any violations.

Temu’s Response to the EU’s Probe

In response to the EU’s concerns, Temu stated, “We take our responsibilities under the DSA very seriously. We’re investing in improving our compliance systems and will work closely with regulators to make sure our marketplace is safe for consumers.” Temu also revealed plans to sign a “memorandum of understanding” to combat counterfeit goods, which would be a voluntary agreement under the EU’s guidance. This agreement is expected to enhance cooperation between the platform and regulators to prevent the sale of counterfeit items.

A spokesperson for Temu explained, “Counterfeiting is a challenge for the whole industry, and we believe that working together is essential to protect both consumers and rights holders.”

The Bigger Picture: What This Means for Online Shopping in Europe

This investigation is part of a larger shift in the EU’s approach to online marketplaces, with the DSA acting as a new standard for digital safety and fairness. Under the DSA, the EU aims to make sure that platforms don’t just focus on attracting users but also prioritize consumer safety. If the EU finds Temu guilty of breaching the DSA, it could face significant fines and be forced to strengthen its policies around illegal products.

What’s Next?

The EU’s investigation is still in the early stages, and officials haven’t reached any final conclusions. Right now, they’re gathering information to see if Temu’s issues are “systemic,” meaning part of how the platform operates, rather than one-off incidents. However, the EU’s message is clear: online platforms must follow the rules and make sure their marketplaces are safe for consumers.

As shopping apps like Temu continue to rise in popularity, the EU’s scrutiny could set a new precedent. This investigation may be the start of stricter oversight on global e-commerce giants operating in Europe.