"Germany's Federal Cartel Office on Wednesday announced an investigation into Chinese e-commerce giant Temu, saying it wanted to examine conditions for traders and the company's treatment of the suppliers it relies upon to sell products. "Each month more than 100 million users from European marketplaces visit temu.com," Andreas Mundt, the president of the competition watchdog, said in a statement."
""For almost a year now the trading platform for German suppliers is also open. We are pursuing the suspicion that Temu could be setting unacceptable conditions for pricing for traders on the German marketplace," Mundt said. "Such actions could pose dramatic threats to competition and ultimately lead to price increases in other sales channels as a result.""
"The investigation formally targets EU-wide parent company Whaleco Technology Limited (Temu) based in Dublin in notoriously corporation-tax-friendly EU member the Republic of Ireland. Temu has an estimated 19.3 million active users in Germany, the equivalent of well over one quarter of the adult population. Reliable figures for Temu's turnover or trade volume are not available, but experts concur that its revenues spiked sharply in 2024 amid its expansion in Europe and the Americas. Estimates for annual turnover range between roughly $30 billion and $70 billion, either doubling or quadroupling 2023's figure."
Germany's Federal Cartel Office opened an investigation into Temu to examine conditions for traders and the company's treatment of suppliers. The probe targets suspected unacceptable pricing conditions imposed on traders in the German marketplace and the potential for those actions to threaten competition and drive up prices in other channels. The formal target is Whaleco Technology Limited (Temu), based in Dublin. Temu reportedly has about 19.3 million active users in Germany. Reliable turnover figures are unavailable, but experts say revenues spiked sharply in 2024 with estimates between roughly $30 billion and $70 billion. The company also faced an EU probe in July over illegal products.
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