In response to the rise of Chinese online shopping platforms, the European Union has decided to take action. On June 28th, the European Commission officially demanded clarifications from the giants Temu and Shein regarding their questionable business practices. This request, motivated by suspicions of non-compliance with the new Digital Services Act (DSA) regulations, marks a decisive turning point in the regulation of digital commerce in Europe. What are these e-commerce behemoths really hiding?

Temu and Shein, well-known for their attractive prices and growing popularity in France, are now in the EU’s crosshairs. Labeled as « very large online platforms, » they have been subject to strict obligations since the DSA came into force. The European Commission is demanding precise information on the mechanisms in place for users to report illegal products, such as counterfeits. Additionally, Temu and Shein must prove they effectively protect minors and ensure rigorous traceability of sellers.

Brussels’ suspicions do not stop there: Their recommendation algorithms, often criticized for their lack of transparency, will also be scrutinized. The EU wants to ensure these algorithms do not manipulate consumers unfairly or deceptively. One major concern involves dark patterns, manipulative techniques used to influence users’ decisions.

Temu, in particular, is accused of concealing sellers’ identities, making account closure difficult, and incorporating deceptive elements like crossed-out prices or countdown timers. A study by UFC-Que Choisir revealed that Temu uses 11 types of dark patterns, while Shein employs seven. The European Commission, alerted by a complaint filed in May by several consumer associations, has reacted firmly. If Temu and Shein fail to justify their practices and demonstrate their compliance with the DSA, they face severe penalties. A fine of up to 6% of their annual revenue is foreseen for platforms that do not adhere to the regulations.

The EU’s offensive underscores Brussels’ determination to protect users of large online platforms and to establish fair competition in e-commerce. This confrontation could prompt other international platforms to review their practices to comply with European standards. Transparency and ethics are now at the forefront of regulators’ concerns, and this case could redefine the rules of the game in global digital commerce.