What: The European Union has imposed stricter regulations on Chinese e-commerce platform Temu under the Digital Services Act (DSA), aiming to protect consumers from illegal content and deceptive practices.

Why it is important: This move by the EU reflects its commitment to ensuring consumer protection and fair practices in the digital marketplace. By targeting major e-tailers like Temu, the EU aims to curb manipulative tactics and illegal content, thereby fostering a safer and more transparent online shopping environment.

On Friday, the European Union added Chinese e-tailer Temu to the list of major online platforms subject to stringent regulations under the Digital Services Act (DSA). Temu, known for its aggressive pricing strategy, joins other major e-commerce sites like Amazon, Shein, and Zalando in facing these tighter rules. The DSA mandates that all online platforms must protect users from illegal content and deceptive practices. Temu, which has over 75 million monthly users in the EU, has been accused of using deceptive interfaces, or "dark patterns," to manipulate consumers. The company must comply with the new DSA rules by the end of September or face penalties, including fines up to 6% of its global revenue or a potential ban from the European market.

European Union imposes tougher rules on Chinese e-tailer Temu