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The European Union said Friday that it\u2019s adding Chinese online retailer Temu to its list of platforms facing the bloc\u2019s highest level of digital scrutiny.<\/p>\n
Because it has more than 45 million users, Temu is being classed as a \u201cvery large online platform\u201d under the the EU\u2019s Digital Services Act, a wide-ranging rulebook designed to clean up online platforms and keep internet users safe.<\/p>\n
That means that by September 2024 Temu will be required to obey the DSA\u2019s most stringent rules and obligations, which include assessing and mitigating \u201csystemic risks.\u201d<\/p>\n
\u201cTemu must put in place mitigation measures to address risks, such as the listing and sale of counterfeit goods, unsafe products, and items that infringe on intellectual property rights,\u201d the European Commission, the 27 nation bloc\u2019s executive arm, said in a press release.<\/p>\n
The company could do this by taking measures such as modifying its user interface for better reporting and detection of suspicious listings, improving its moderation processes to swiftly remove illegal items, and refining its algorithms to prevent the promotion and sale of prohibited goods, the commission said.<\/p>\n
Temu said it \u201cacknowledges\u201d the commission\u2019s decision.<\/p>\n
\u201cWe are fully committed to adhering to the rules and regulations outlined by the DSA to ensure the safety, transparency, and protection of our users within the European Union,\u201d the company said in a statement.<\/p>\n
Temu started entering Western markets only in the past two years and has grown in popularity by offering cheap goods \u2013 from apparel to home products \u2013 that are shipped from China.<\/p>\n
There are already about two dozen tech names including Facebook<\/a>, TikTok, YouTube<\/a>, Instagram, Amazon<\/a> and Google<\/a> Search on the EU\u2019s list of the biggest online services that need the toughest tier of supervision since the DSA took effect last year. Other online services operating in the EU aren\u2019t exempt \u2013 they still have to comply with the law\u2019s general requirements. Violations are punishable by fines of up to 6% of a company\u2019s annual worldwide revenue.<\/p>\n<\/div>\nSubscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up<\/a> for free.<\/div>\n<\/div>\n