Irish authorities question Chinese e-commerce giant Temu over DSA compliance

Despite Temu’s assertions of falling below this threshold, recent statistics suggest otherwise.

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Irish authority, Coimisiún na Meán, is contacting companies with headquarters in Ireland, including Temu, a Chinese online marketplace, to gather information under the Digital Services Act (DSA). According to statistics, companies with over 45 million users are deemed Very Large Online Platforms (VLOP), subject to stricter regulations, and Temu, despite claiming it falls below this threshold, reportedly exceeded it.

The Commission actively monitors market developments and liaises with digital services coordinators to designate VLOPs. Media reports indicate that Shein, a Chinese fashion website, may face DSA regulations due to its reported 108 million monthly active users in Europe. However, Temu and Shein have yet to respond to requests for comment on their status and any actions they may take to address concerns raised under the DSA. 

Why does it matter?

The European Union’s Digital Services Act (DSA) recently came into full effect, with national regulators such as Ireland’s Coimisiún na Meán tasked with implementation. However, drawing from past experiences, particularly with the Data Protection Commission (DPC), which faced challenges regulating large service providers based in Ireland, the EU has empowered itself to directly investigate and prosecute such entities for DSA violations.