Temu will have to comply with tougher EU online content rules, EU says

BRUSSELS, May 31 (Reuters) - Temu will have to comply with stricter EU online content rules after its user numbers exceeded a key criterion, the European Commission said on Friday, putting the PDD Group's (PDD.O) fast-fashion e-commerce retailer in a group that includes Amazon (AMZN.O), Meta Platforms (META.O) and TikTok.

Under the European Union's Digital Services Act (DSA), companies with more than 45 million users are designated very large online platforms (VLOPs) and are required to do more to fight illegal and harmful content as well as counterfeit products on their platforms.

Temu, which entered the EU market in April last year, had about 75 million average monthly active users in the European Union for the six months ended March 31 this year.

"Following today's designation as a VLOP, Temu will have to comply with the most stringent rules under the DSA within four months of its notification (that is by the end of September 2024)," the EU executive, which acts as the EU tech regulator, said in a statement.

DSA obligations for VLOPs include assessing and mitigating systemic risks related to their services such as the listing and sale of counterfeit goods, unsafe or illegal products, and items that infringe intellectual property rights.

"We are fully committed to adhering to the rules and regulations outlined by the DSA to ensure the safety, transparency, and protection of our users within the European Union," Temu said.

DSA violations can cost companies up to 6% of their global annual turnover.