The shopping app everyone's downloading might be playing you

The Commission began looking into Temu last year as part of the broader DSA push, which has also brought major tech companies like Google, Apple, Meta, Microsoft, TikTok and even Elon Musk's X under scrutiny. But Temu's charge sheet includes serious claims like using addictive app design to keep users shopping longer and failing to block the sale of illegal goods.

And that is not all. A separate probe under EU consumer protection law is also looking into some of Temu's sketchy practices, like fake reviews and fake discounts – things that can seriously mislead shoppers.

The Commission says it will continue digging into Temu's other suspected violations, including how well its risk-reduction measures actually work, how transparent its recommendation algorithms are, whether it is using manipulative design to hook users and whether researchers have access to its data.

If the EU's preliminary findings hold up, Temu could be hit with an official non-compliance ruling – and the consequences wouldn't be small. We are talking fines of up to 6% of its global revenue, plus mandatory changes to bring the platform in line with EU rules.

Given that Temu's worldwide revenue in 2024 is estimated at $70.8 billion, that fine could climb as high as $4 billion. To put that in perspective, that is more than what Google was fined in the EU for allegedly rigging its shopping search results to edge out smaller rivals.

I think laws like the DSA are exactly the kind of pushback we need against shady online practices. Yeah, the EU has a reputation for coming down hard on big tech, but more often than not, there is a good reason.

Apps like Temu and Shein, which have blown up with younger audiences, need tighter oversight – not just to ensure the products they sell are safe, but also to prevent user data from being exploited.