Investigation against Him
The European Commission has launched formal proceedings against platform Ago, run by the Chinese-owned company PDD Holdings Inc. – according to information from the European Commission.
European Commission said it suspected the company of violating the new Digital Services Act (DSA), a law aimed at eliminating illegal content and disinformation on the Internet. If a violation is found, Temu may be fined up to 6%. their annual revenues.
The commission also said it would also assess Temu’s practices in terms of transparency and access to dataas well as allegedly implementing addictive features to keep users engaged. The commission said it was concerned that illegal and potentially dangerous products could be sold on the platform and that the company was not doing enough to control rogue traders.
An attempt to organize Big Tech
European regulators are cracking down on Big Tech companies as part of efforts to reduce harm caused on the Internet. Under the EU’s Digital Services Act (DSA), online platforms with over 45 million users must take measures to stop the spread of disinformation and illegal content – including products offered that are illegal in the EU. Otherwise, these companies risk a fine of up to 6%. their global annual revenues.
A representative for Temu did not immediately respond to a request for comment. Following a formal EU investigation, Temu has the right to propose the adoption of remedial measures to address the Commission’s concerns and avoid potential penalties.
How Temu fights against illegal products
The investigation is the result of an EU request from October 11, in which it requested… Ago sharing data on how the platform deals with counterfeit or unsafe products on its market. The commission said at the time that it had requested “detailed information and internal documents on the mitigating measures taken against the presence and re-emergence of traders selling illegal products” on Temu. However, the information provided by Temu so far has been unsatisfactory and has not addressed the EU’s concerns.