The EU wants to know more about the systems Temu has in place to ‘restrict the sale’ and how it prevents the ‘re-emergence’ of illegal products – once removed – such as pharmaceuticals, chemicals and toys as well as counterfeit products.

The company said it “takes its obligations under the DSA seriously.”

“We will fully cooperate with regulators to support our shared goal of a safe and reliable market for consumers,” a Temu spokesperson said in a statement.

Temu is in talks to join a commission-facilitated EU deal that brings together trading platforms and others to stop the sale of counterfeit products online.

“A promising step”

The company will also need to explain what steps it takes to address risks related to its service, including gamified reward programs.

The investigation comes after Temu submitted a risk assessment report to the EU, as well as responses to several requests for information, the latest published on October 11.

The company can avoid fines if it makes commitments during the investigation that the EU says alleviate its concerns.

European consumer groups have already warned that Temu is breaking EU law.

They filed a complaint in May with the commission, accusing Temu of using “manipulative techniques” to trick users into spending more and other violations.

European consumer rights group BEUC welcomed the investigation on Thursday.

“This decision by the commission is a promising step, but only the first. It is now important that the commission maintains pressure on Temu and pushes the company to comply with the law as quickly as possible,” said Fernando Hortal Foronda of BEUC.

Multiple probes

The EU investigation will also examine Temu’s systems and how they recommend content and products to users and analyze access to the platform’s data for researchers.

Temu will also have to provide more details on the “parameters” of its recommendation systems, which are used by platforms to offer more personalized content.

The EU stressed that “the initiation of a formal procedure does not prejudge its outcome” and that there is no deadline for the completion of the investigation.

Temu is one of 25 “very large” online platforms that must comply with the DSA or face fines of up to 6% of their global turnover, or even a ban in the event of serious and repeated violations.

Other shopping platforms that must comply with the DSA include Chinese online retailer AliExpress, US giant Amazon and Chinese company Shein.

Other DSA investigations have targeted AliExpress, the social media platform