LONDON — Chinese online retailer Temu is under investigation by the European Union over suspicion of failing to prevent the sale of illegal products, the executive branch of the 27-nation bloc said on Thursday.

The European Commission opened its investigation five months later add Temu to list “very large online platforms” requiring the strictest level of control under the bloc’s digital services law. It is a broad regulation designed to clean up online platforms and keep internet users safe, under threat of hefty fines.

Temu has only started to enter Western markets in the last two years and has gained popularity in offer cheap products – from clothing to home products, shipped by sellers in China. The company, owned by Pinduoduo Inc., a popular e-commerce site in China, now has 92 million users in the EU.

Temu said it “takes its obligations under the DSA seriously, continually investing to strengthen our compliance system and protect the interests of consumers on our platform”.

“We will fully cooperate with regulators to support our shared goal of a safe and trusted marketplace for consumers,” the company said in a statement.

European Commission Executive Vice President Margrethe Vestager said in a press release that Brussels wants to ensure that products sold on the Temu platform “meet EU standards and do not harm consumers.”

EU enforcement “will ensure a level playing field and that every platform, including Temu, fully complies with the laws that keep our European market safe and fair for all,” he said. she declared.

The commission’s investigation will examine whether Temu’s schemes are doing enough to crack down on “rogue traders” selling “non-compliant goods”, amid fears they could re-emerge quickly after being suspended. The commission did not identify specific illegal products sold on the platform.

Regulators are also examining the risks of Temu’s “addictive design,” including “game-like” reward programs, and what the company is doing to mitigate those risks.

Temu’s compliance with two other DSA requirements is also under investigation: giving researchers access to data and transparency on recommendation systems. Businesses must detail how they recommend content and products, and provide users with at least one option to see recommendations that are not based on their personal profile and preferences.

Temu now has the opportunity to respond to the commission, which can decide to impose a fine or drop the case if the company makes changes or can prove that the suspicions are unfounded.

Brussels has been cracking down on tech companies since the DSA came into force last year. It also opened an investigation into another e-commerce platform, AliExpress, as well as social media sites like X and TikTok, which gave in to pressure after the commission requested answers on a new rewards feature.

Temu has also come under scrutiny in the United States, where a Congress Report last year accused the company of failing to prevent the sale of products made with forced labor on its platform.