Temu Eyes Anti-Counterfeit Pact Amid EU Scrutiny

Chinese ecommerce platform Temu is considering joining a European initiative to curb the online sale of counterfeit goods. The European Commission requires large platforms like Temu to combat illegal content under the Digital Services Act. Temu faces scrutiny and potential investigation regarding compliance with EU regulations.

Chinese online retailer Temu is contemplating joining a European collaboration aimed at preventing the sale of counterfeit products, according to a meeting agenda seen by Reuters. This initiative, known as the "Memorandum of Understanding on the sale of counterfeit goods on the internet," is facilitated by the European Commission. Among the signatories are ecommerce giants such as Amazon, Alibaba, and eBay, as well as global brands like Adidas and Nike.

Temu, a subsidiary of PDD Holdings, is expected to present at a November 11 meeting as a potential new member of the pact. The company has rapidly expanded across Europe and the US, attracting millions with its enticing prices. However, EU authorities are increasing pressure on Temu to ensure product safety and legality within the bloc.

While Temu is poised to help curb counterfeit sales, concerns linger about its impact on the credibility of the network. The European Commission has designated Temu a "very large online platform," mandating stronger efforts to combat illegal and harmful content. Bloomberg News reported an impending EU investigation into Temu's compliance with the Digital Services Act.

(With inputs from agencies.)