Recently, as the average monthly user count of Temu, a fast fashion e-commerce retailer under Pinduoduo, exceeds a critical threshold in Europe, the platform is likely to have to comply with strict online content rules in the European Union. This change is closely related to the European Union's Digital Services Act (DSA), which classifies companies with over 45 million users as "Very Large Online Platforms (VLOPs)" and imposes greater responsibility on these platforms in combating illegal harmful content and counterfeit products.

Temu entered the EU market in April last year, and its website update data shows that in the six months ending March 31 this year, the average monthly active users of the platform in the EU were about 75 million. The European Commission stated that it is aware that the number of Temu users has exceeded the DSA threshold and is in contact with the platform to consider possible future designations. Previously, Chinese fast fashion company Shein also reported that its average monthly active users in the 27 EU countries reached 108 million, and is currently discussing its DSA designation with the European Commission.

For Temu, once officially designated as VLOPs, they will need to comply with the strictest rules in the DSA within four months of receiving notification (i.e. by the end of September 2024). This undoubtedly brings new challenges to Temu, and the platform needs to re-examine its content management and product regulatory processes to meet regulatory requirements. For merchants operating on the Temu platform, they also need to closely monitor the further refinement of platform rules to ensure their business operates in compliance and avoid losses due to changes in platform rules.