Temu managed to escape the dance until now, but this platform is also going to fall under the DMA. That means strict rules for the spiritual successor to AliExpress.
You can hardly fail to see the ads for Temu passing by on the Internet. The Chinese company is doing everything it can to grow and become the new AliExpress and Shein of the Web.
It has succeeded well, as the company has also caught the eye of the EU. And it’s not too happy with the latter, because it faces considerably stricter rules because of the Digital Markets Act (DMA).
AliExpress 2.0 Temu won’t escape the Digital Markets Act
According to some reports, Temu currently has more than 75 million users in the European Union. This means it meets the classification of “very large online platform” (VLOP), or in plain Dutch: a very large online platform. It thus falls under the DMA rules.
Temu is now the 24th company to fall under the DMA. Other companies covered by the DMA include Apple, Meta, Google and ByteDance. This means that there is extra scrutiny on the company, as this gives it a great dominance. Incidentally, Temu is not the only store covered by this; Amazon and Shein are also subject to these rules.
The app on the iPhone. (Image: App Store/Temu)
What the DMA means for Temu
That additional oversight means even more scrutiny from the EU on algorithm, AI, content rankings and recommendation tools. This also applies to other risks.
The biggest issue for Temu, however, is even more control over the quality of products. Thus, it must remove counterfeit, illegal and unsafe products from the site.
Temu still has some time to comply with EU requirements. Although all companies that must comply with the DMA have until August, Temu gets until the end of September. This is because companies have four months from the time they are designated as a VLOP to make adjustments.
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