EU Accuses Temu of Obstructing Investigation

The European Commission has accused Chinese e-commerce platform Temu of failing to cooperate during a December inspection at its European headquarters in Dublin. The inspection formed part of an investigation into possible foreign subsidies that could give the company an unfair competitive advantage in the European market.

If the allegations are confirmed, the company faces a fine of up to 1% of its total annual turnover.

The Commission alleges that during the inspection, Temu failed to comply with several requests for information regarding the organization and management of its operations in the European Union, the information systems it uses, and its accounting records.

Temu has rejected the allegations. The company claims that it cooperated fully with the Commission during the inspection and met all requirements. It also denied receiving state subsidies that distort competition, saying that its own revenues are sufficient to finance its operations in the EU.

The European Union has recently been tightening its oversight of low-cost imports from China via platforms such as Temu, Shein and AliExpress. Effective 1 July, it also introduced a €3 ($3.44) fee on small shipments from China, which had previously been exempt from customs duties.

In a separate case, the European Commission fined Temu €200m ($230m) in May for failing to take adequate measures against the sale of illegal products on its platform.

(Reuters, bak)