Launch Catch-Up — European Commission Decision Announced October 26
The European Commission has accepted Temu’s action plan to address shortcomings under the Digital Services Act, moving the online marketplace into a new phase of work on risks associated with illegal products.
Reuters reported the decision Monday, October 26, and Euronews separately reported the measures Temu has promised. Acceptance of the plan is a regulatory step; it does not establish that every proposed safeguard has already been implemented or proven effective.
The company’s commitments include a risk analysis and monitoring of efforts to prevent illegal products from being sold through its platform. Temu will review possible weaknesses in content moderation and examine whether recommendation systems can amplify the distribution of illegal goods, according to the reports.
Reuters reported that the plan has five measures and provides four months for an interim risk assessment. Temu said it welcomed the Commission’s acceptance.
The decision follows the Commission’s €200 million penalty in May. The current development concerns Temu’s response to that regulatory finding, rather than a newly announced penalty or a new accusation against an individual.
Temu is owned by PDD Holdings. The action plan concerns the European Union’s regulation of online platforms and the products reaching European shoppers. Monday’s reports do not announce a parallel change in U.S. consumer rules.
The next substantive question is implementation: whether the platform’s assessments identify weaknesses and whether its controls reduce the relevant risks. The acceptance announcement records the proposed course of action; it does not supply completed test results for those controls.
Sources: Reuters — October 26 decision report: https://www.aol.com/articles/eu-accepts-temu-plan-remedy-125521000.html Euronews with AFP — October 26 report: https://www.aol.co.uk/articles/temu-falls-line-eu-backs-141103000.html