BRUSSELS, May 31 (Reuters) - Temu will have to comply
with stricter EU online content rules after its user numbers
exceeded a key criterion, the European Commission said on
Friday, putting the PDD Group's fast-fashion e-commerce
retailer in a group that includes Amazon ( AMZN ), Meta
Platforms ( META ) and TikTok.
Under the European Union's Digital Services Act (DSA),
companies with more than 45 million users are designated 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, 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.
DSA violations can cost companies up to 6% of their global
annual turnover.