EU Says Temu in Breach of Rules to Prevent Sale of Illegal Products
The EU's findings could ultimately lead to a fine of up to 6 percent of Temu's annual global turnover, the Commission said.
'Evidence showed that there is a high risk for consumers in the EU to encounter illegal products on the platform,' it said in a statement about Temu.
'Specifically, the analysis of a mystery shopping exercise found that consumers shopping on Temu are very likely to find non-compliant products among the offer, such as baby toys and small electronics.'
ADVERTISEMENT
The Commission said Temu's risk assessment was inadequate as it was based on general industry information, not on the specifics of its platform.
It said that if the Commission's preliminary findings were ultimately confirmed, Temu would be found in breach of the Digital Services Act.
'Such a decision could entail fines of up to 6 percent of the total worldwide annual turnover of the provider and order the provider to take measures to address the breach,' it said.
Temu can respond to the EU's findings in the coming weeks, an EU spokesperson said, without giving an exact deadline.
A Temu spokesperson said the company would continue to 'cooperate fully' with the Commission.
The findings relate only to one aspect of a broader ongoing EU investigation into Temu, the Commission said.
Temu is also suspected of breaching EU rules relating to the use of addictive design features, the transparency of its recommendation systems and its access to data for researchers.
By Bart Meijer; Editor: Ros Russell
ADVERTISEMENT
Learn more:
Temu US Sales Plunge 25% Amid Tariff Barrage
Temu's US sales are declining due to significant cuts in advertising spending, a direct consequence of new tariffs, while Shein's sales have begun to recover.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
QUALCOMM Incorporated (QCOM)'s On Fire Due To AI, Says Jim Cramer
We recently published . QUALCOMM Incorporated (NASDAQ:QCOM) is one of the stocks Jim Cramer recently discussed. QUALCOMM Incorporated (NASDAQ:QCOM) is one of the biggest chip design companies in the world. The firm holds a commanding market share in the Android smartphone processor and GPU market. QUALCOMM Incorporated (NASDAQ:QCOM)'s shares depend to a large extent on Chinese smartphone performance and have gained a modest 6.3% year-to-date. In his remarks, Cramer discussed the firm's shares in the context of the broader AI-led bullishness in semiconductor stocks: 'It's the AI-related chips that are on fire today. . .Qualcomm. . .moving up again. . .Let's again speak of the stock market rather than Sweden's gonna do, what's happening in Sweden. The stock market is reacting incredibly positively to stuff and there are people who don't want to react to it or think that somehow those points aren't valuable. I think they're crazy. We're having a good rally.' Copyright: kobby_dagan / 123RF Stock Photo Cramer previously discussed QUALCOMM Incorporated (NASDAQ:QCOM) in February after an interview given by the firm's CEO: 'I did not find Qualcomm disconcerting because it was interviewed, he was interviewed with Jon Fortt and he's a bit promotional but I do think he's gotten what he needs.' While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
38 minutes ago
- San Francisco Chronicle
Hong Kong firm appeals for legal protection of investors as its Panama Ports contract faces lawsuits
HONG KONG (AP) — A subsidiary of a Hong Kong conglomerate entangled in U.S.-China tensions appealed on Friday for legal protection for businesses in Panama after the company's contract over its Panama Canal port assets has been faced with lawsuits in the Central American country. Respect for the rule of law is essential to assure businesses that Panama is a safe place to invest in, Panama Ports Company, under Hong Kong-based CK Hutchison Holdings, said in a statement. Panama's Comptroller General filed two lawsuits on Wednesday, seeking to declare unconstitutional a contract that granted the operation of ports at both ends of the canal to the Hong Kong subsidiary, and to nullify its renewal four years ago, saying it was 'abusive' of Panama's interests. In turn, Panama Ports Company said its operations have had a positive impact, from building world-class ports to creating more than 25,000 direct and indirect jobs and contributing billions of balboas — Panama's currency — to the country's economy. It said it wants to work with the government in Panama for a better future. 'Regarding the ongoing legal actions, we firmly believe that respect for legal protection and the rule of law are essential in order to provide businesses and investors with the certainty that Panama is a safe country to invest in,' it said. The company operates the ports of Balboa, in the Pacific, and Cristobal, in the Atlantic, under a concession contract approved in 1997 and renewed in 2021 for 25 more years. CK Hutchison is controlled by the family of Li Ka-shing, the southern Chinese city's richest man. Panama's comptroller authority in April said that an audit of Panama Ports Company found irregularities in the renewal of the concession. But the company denied allegations that it had failed to pay about $1.2 billion to the Central American country. Panama President José Raúl Mulino said during his weekly news conference on Thursday that he fully supported the comptroller's case and would await the court's verdict. 'We have all seen what that contract has costed the Panamanian nation over time,' Mulino said without elaborating. He alluded to some sort of public-private partnership for the ports, saying there was a lot of interest from private companies, but that it was in the early stages and provided no details. CK Hutchison Holdings' initial plan, announced in March, to sell its port assets in dozens of countries to a group that includes the U.S. investment firm BlackRock Inc., also got caught up in tensions between Beijing and Washington. U.S. President Donald Trump, who has alleged that China interferes with the canal, initially welcomed that plan. However, it apparently angered Beijing and drew a review by Chinese anti-monopoly authorities. After months of uncertainty, Hutchison said on Monday that it may seek a Chinese investor to join a consortium of buyers, which also includes BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, a subsidiary of the Mediterranean Shipping Company. The initial deal, valued at nearly $23 billion, including $5 billion in debt, would have given the consortium control over 43 ports in 23 countries, including the two at the Panama Canal. Panama Ports Company said Friday it would communicate with the Panamanian government 'at the appropriate time,' affirming that it believes engaging with the government 'is vital to discuss the way forward for' the company.
40 minutes ago
Hong Kong firm appeals for legal protection of investors as its Panama Ports contract faces lawsuits
HONG KONG -- A subsidiary of a Hong Kong conglomerate entangled in U.S.-China tensions appealed on Friday for legal protection for businesses in Panama after the company's contract over its Panama Canal port assets has been faced with lawsuits in the Central American country. Respect for the rule of law is essential to assure businesses that Panama is a safe place to invest in, Panama Ports Company, under Hong Kong-based CK Hutchison Holdings, said in a statement. Panama's Comptroller General filed two lawsuits on Wednesday, seeking to declare unconstitutional a contract that granted the operation of ports at both ends of the canal to the Hong Kong subsidiary, and to nullify its renewal four years ago, saying it was 'abusive' of Panama's interests. In turn, Panama Ports Company said its operations have had a positive impact, from building world-class ports to creating more than 25,000 direct and indirect jobs and contributing billions of balboas — Panama's currency — to the country's economy. It said it wants to work with the government in Panama for a better future. 'Regarding the ongoing legal actions, we firmly believe that respect for legal protection and the rule of law are essential in order to provide businesses and investors with the certainty that Panama is a safe country to invest in,' it said. The company operates the ports of Balboa, in the Pacific, and Cristobal, in the Atlantic, under a concession contract approved in 1997 and renewed in 2021 for 25 more years. CK Hutchison is controlled by the family of Li Ka-shing, the southern Chinese city's richest man. Panama's comptroller authority in April said that an audit of Panama Ports Company found irregularities in the renewal of the concession. But the company denied allegations that it had failed to pay about $1.2 billion to the Central American country. Panama President José Raúl Mulino said during his weekly news conference on Thursday that he fully supported the comptroller's case and would await the court's verdict. 'We have all seen what that contract has costed the Panamanian nation over time,' Mulino said without elaborating. He alluded to some sort of public-private partnership for the ports, saying there was a lot of interest from private companies, but that it was in the early stages and provided no details. CK Hutchison Holdings' initial plan, announced in March, to sell its port assets in dozens of countries to a group that includes the U.S. investment firm BlackRock Inc., also got caught up in tensions between Beijing and Washington. U.S. President Donald Trump, who has alleged that China interferes with the canal, initially welcomed that plan. However, it apparently angered Beijing and drew a review by Chinese anti-monopoly authorities. After months of uncertainty, Hutchison said on Monday that it may seek a Chinese investor to join a consortium of buyers, which also includes BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, a subsidiary of the Mediterranean Shipping Company. The initial deal, valued at nearly $23 billion, including $5 billion in debt, would have given the consortium control over 43 ports in 23 countries, including the two at the Panama Canal. Panama Ports Company said Friday it would communicate with the Panamanian government 'at the appropriate time,' affirming that it believes engaging with the government 'is vital to discuss the way forward for' the company. Panama's government maintains it has full control over the canal and that the operation of the ports by Hutchison does not mean Chinese control of it.
