Temu Likely to Face Tougher Online Content Rules as EU Users Soar

PDD Group’s fast-fashion e-commerce retailer Temu is prone to be topic to powerful EU on-line content material guidelines that already apply to Meta Platforms, Google, Elon Musk’s X and TikTok after its common month-to-month customers in Europe rose above a key threshold.

Below the European Union’s Digital Companies Act (DSA), corporations with greater than 45 million customers are labelled very massive on-line platforms (VLOPs) and are required to do extra to combat unlawful and dangerous content material in addition to counterfeit merchandise on their platforms.

Temu, which entered the EU market in April final 12 months, mentioned it had about 75 million common month-to-month energetic customers within the European Union for the six months ended March 31 this 12 months, in line with an replace on its web site.

The European Fee mentioned it was conscious that Temu’s consumer numbers had exceeded the DSA threshold.

“We’re in touch with the platform in view of a doable designation sooner or later,” a Fee spokesperson mentioned.

Chinese language-founded fast-fashion firm Shein final month reported 108 million common month-to-month energetic customers within the 27-country bloc and is now in discussions with the Fee on its doable DSA designation.

By Foo Yun Chee; Editor: Susan Fenton

Be taught extra:

Temu-Owner PDD Jumps 15% After Revenue Beats Estimates Amid Overseas Push

PDD Holdings Inc.’s shares jumped 15 p.c in New York pre-market buying and selling Wednesday after the corporate reported stronger-than-expected income because it ramped up its abroad growth.