BRUSSELS (Reuters) -The European Commission stated that Temu must comply with stricter EU online content rules. This decision comes after Temu’s user numbers surpassed a key criterion, placing it alongside major platforms like Amazon and TikTok.
The Digital Services Act designates companies with over 45 million users as VLOPs. They must intensify efforts to combat illegal content and counterfeit products.
Temu, which entered the EU market in April last year, had about 75 million average monthly active users in the European Union for the six months ended March 31 this year.
“Following today’s designation as a VLOP, Temu will have to comply with the most stringent rules under the DSA within four months of its notification (that is by the end of September 2024),” the EU executive, which acts as the EU tech regulator, said in a statement.
DSA obligations for VLOPs include assessing and mitigating systemic risks related to their services such as the listing and sale of counterfeit goods, unsafe or illegal products, and items that infringe intellectual property rights.
“We 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,” Temu said.
DSA violations can cost companies up to 6% of their global annual turnover.
Moreover, the EU’s commitment to protecting users from harmful content is evident. As Temu navigates these regulations, it must prioritize user safety and compliance.
Consequently, adherence to EU online content rules will be crucial for Temu’s continued operation within the EU market.
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