The Finnish Commerce Federation is satisfied with the EU Commission’s decision to investigate the operations of the Chinese Temu
The Finnish Commerce Federation is satisfied with the European Commission’s decision to investigate the operations of the Chinese e-commerce platform Temu. Together with other Nordic commerce sector organisations, the Finnish Commerce Federation has actively highlighted challenges related to marketplaces operating from third countries and the competitive disadvantages arising from their operations.
The European Commission intends to investigate whether the online platform Temu has violated the EU’s Digital Services Act (DSA). The goal of the Act is to improve the rights and safety of users in digital services, such as online stores. There are several uncertainties in Temu’s operations, including whether it allows products that do not meet the requirements to reappear on its platform.
“It is very positive that the matter is now progressing at the EU level, and the Commission has decided to examine Temu’s operations thoroughly from the perspective of legality. Finnish and other European stores pay administrative costs for product monitoring and labelling, standards and testing, for example. On the other hand, products that do not meet the requirements are sold through Chinese marketplaces, and their sellers and marketplaces do not incur similar costs as Finnish and other European operators,” says Kari Luoto , Managing Director of the Finnish Commerce Federation.
The Finnish Commerce Federation and Nordic commerce sector organisations have actively highlighted the challenges related to marketplaces operating from third countries and the competitive disadvantages they cause. The test purchases made by the Finnish Commerce Federation have also clearly shown that there are significant shortcomings in the safety and compliance of products sold on the Temu platform.
The Finnish Commerce Federation considers it important that both Finnish and EU decision-makers continue to highlight the issue and strive to promote fair competitive conditions in the EU in a determined manner. The informal meeting of state and government leaders held in Budapest on 8 November focuses on the competitiveness of companies.
Further information: Kari Luoto, Managing Director, Finnish Commerce Federation, tel. +358 (0) 400 688 708, kari.luoto@kauppa.fi
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