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EU accepts Temu plan to remedy Digital Services Act breach

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In short

The European Commission has approved Temu's action plan to remedy a Digital Services Act breach, requiring the Chinese online retail platform to conduct an interim risk assessment within four months. This comes after a €200 million fine imposed on Temu in May for failing to prevent illegal product sales. Temu welcomed the approval and plans to evaluate its content moderation system. The €3 fees on ecommerce packages under €150 have sparked controversy, prompting the Commission to accept the plan.

Key points

  • Temu has accepted the Commission's approval for its action plan to address a breach of th…: Temu has accepted the Commission's approval for its action plan to address a breach of the Digital Services Act.
  • Temu must conduct an interim risk assessment within four months as part of the plan.: Temu must conduct an interim risk assessment within four months as part of the plan.
  • The €200 million fine imposed on Temu in May for failing to prevent illegal product sales…: The €200 million fine imposed on Temu in May for failing to prevent illegal product sales is a source of controversy.

Sources checked by our analysis pipeline: 1

BRUSSELS, Oct 26 : The European Commission said on Monday it had accepted Chinese online retail platform Temu's action plan to remedy a breach of the EU's Digital Services Act, following a fine imposed on the company in May.

The plan focuses on five measures to remedy the breach, and Temu now has four months to conduct an interim risk assessment, the Commission, which acts as EU regulator, said in a statement.

The Commission had imposed a €200 million ($224.08 million) fine on Temu in May for not doing enough to stop the sale of illegal products.

A spokesperson for Temu, which is owned by PDD Holdings, said it welcomed the Commission's approval of its plan under which the company will have to assess possible shortcomings of its content moderation system, among other steps.

Temu, along with Shein and other ecommerce platforms, has been hit by the EU imposing €3 fees on low-value ecommerce packages since the start of July. Parcels worth less than €150 previously entered the bloc duty-free.

($1 = 0.8925 euros)

Original source: www.channelnewsasia.com

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