Temu likely to face tougher online content rules as EU users soar

[April 15, 2024]  By Foo Yun Chee
 
BRUSSELS (Reuters) - PDD Group's fast-fashion e-commerce retailer Temu is likely to be subject to tough EU online content rules that already apply to Meta Platforms, Google, Elon Musk's X and TikTok after its average monthly users in Europe rose above a key threshold. 

The logo of Temu, an e-commerce platform owned by PDD Holdings, is seen on a mobile phone displayed in front of its website, in this illustration picture taken April 26, 2023. REUTERS/Florence Lo/Illustration/File photo

Under the European Union's Digital Services Act (DSA), companies with more than 45 million users are labelled very large online platforms (VLOPs) and are required to do more to fight illegal and harmful content as well as counterfeit products on their platforms.

Temu, which entered the EU market in April last year, said it had about 75 million average monthly active users in the European Union for the six months ended March 31 this year, according to an update on its site.

The European Commission said it was aware that Temu's user numbers had exceeded the DSA threshold.

"We are in contact with the platform in view of a possible designation in the future," a Commission spokesperson said.

Chinese-founded fast-fashion company Shein last month reported 108 million average monthly active users in the 27-country bloc and is now in discussions with the Commission on its possible DSA designation.

(Reporting by Foo Yun Chee; Editing by Susan Fenton)

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