As reported by Deutsche Welle.
In Germany, the Federal Competition Authority, known as the Bundeskartellamt, announced an investigation into the Chinese e-commerce giant Temu. The aim of the probe is to determine what terms apply to traders on the German market and how Temu interacts with suppliers, from whom the platform’s assortment depends.
“More than 100 million users from European marketplaces visit temu.com every month.”
Why the antitrust authority has focused its attention on Temu
“For almost a year the platform for German suppliers has also been open. We are investigating the suspicion that Temu may be setting impermissible pricing terms for sellers on the German market.”
“Such actions could pose serious threats to competition and ultimately lead to higher prices in other sales channels.”
The formal investigation is aimed at the European parent company Whaleco Technology Limited (Temu), registered in Dublin, Ireland, and operating across the entire EU.
In Germany, Temu counts about 19.3 million active users, representing more than a quarter of the country’s adult population.
There is no reliable data on Temu’s turnover, but experts note a significant jump in revenue in 2024 during expansion in Europe and the Americas. Estimates put annual turnover at roughly $30 to $70 billion, meaning it has the potential to double or triple its 2023 figures.
In July this year, the European Commission also reviewed Temu, accusing the company of violating EU law due to an insufficient response to the sale of illegal goods on the platform.
Such steps underscore regulators’ growing attention to Temu and its impact on the European Union. The investigation could affect competition conditions in online shopping, influencing prices and the requirements placed on sellers on major marketplaces.
See also:
