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Six EU countries want to increase pressure on Temu and Shein

by AI | 27.Sep 2024 | Europe in brief AI

Online shopping is long established, but controversial new platforms such as the two Chinese portals Temu and Shein are shaking up the market. Germany and other EU countries are turning to the European Commission.

Some EU countries are calling for stricter controls on online platforms Temu and Shein from the EU Commission. Photo: Hannes P Albert/dpa

Brussels – The German federal government, together with other EU states, is advocating for stronger control of online retailers such as the Chinese companies Temu and Shein. “We can no longer tolerate that hundreds of thousands of packages with products that do not meet European standards arrive daily,” said the Secretary of State of the German Federal Ministry for Economic Affairs and Climate Action, Sven Giegold, in Brussels.

Along with Austria, Poland, Denmark, the Netherlands, and France, the federal government is urging the EU Commission to impose consistent penalties if online retailers do not adhere to existing rules and, for example, do nothing when products on their sites are deemed unsafe. 

Platforms: Popular with consumers, criticized by experts

Shein and Temu are very popular in Germany, mainly due to their low prices. However, the portals are controversial. Trade representatives, politicians, and consumer advocates criticize, among other things, product quality, lack of controls, and unfair competitive conditions. “This concerns environmental law, consumer law, and of course also questions such as data protection and intellectual property rights,” said former European politician Giegold. The platforms reject such accusations.

The countries propose detecting and sanctioning violations through comprehensive data collection and closer cooperation between authorities.

Temu and Shein are growing rapidly 

According to the Cologne Trade Research Institute IFH, 43 percent of consumers in Germany shop at marketplaces like Temu and Shein. According to the industry association BEVH, five percent of orders in German online commerce are accounted for by the two providers. They have more than doubled their market share within a year.