Brussels: The European Commission has initiated formal proceedings to investigate whether Temu, a designated Very Large Online Platform, has breached the Digital Services Act (DSA) in several areas including the sale of illegal products, the service’s potentially addictive design, purchase recommendation systems, and data access for researchers.
According to Cyprus News Agency, the decision to open proceedings follows an analysis of Temu’s risk assessment report submitted in September 2024, responses to the Commission’s formal information requests, and data from third parties. The investigation will probe Temu’s systems for limiting non-compliant product sales in the EU, the impact of its addictive design elements, compliance with DSA’s content recommendation rules, and data accessibility for researchers. The Commission aims to determine if these aspects constitute a violation of specific DSA articles, with liabilities for Temu if proven.
The investigation will focus on systems to prevent the reappearance o
f non-compliant products and rogue traders, as well as mechanisms to mitigate risks from the platform’s design. It will evaluate compliance with recommending content and products, requiring transparency and non-profiling options for users. The probe will also assess Temu’s adherence to providing data access to researchers.
As the investigation proceeds, the Commission will gather further evidence, potentially leading to enforcement actions or acceptance of commitments from Temu to address concerns. The DSA sets no specific timeline for concluding proceedings, which depend on case complexity and cooperation levels. The formal opening of proceedings does not predict the outcome or impact other DSA-related actions, including those by national consumer protection authorities.
Temu, declared a Very Large Online Platform in May 2024, must comply with stringent DSA obligations, given its user base exceeding 45 million within the EU and growing to 92 million by September 2024. The investigation underscores the Comm
ission’s commitment to ensuring compliance with the DSA, safeguarding consumer interests, and maintaining a fair digital marketplace.