Amazon, Temu, and Shein Under EU Scrutiny, Regulators Target Illegal Products and Tougher E-Commerce Rules

E-commerce platforms Amazon.Com Inc AMZN Marketplace, PDD Holdings Inc PDD Temu, and Shein could soon face regulatory attention from the EU for allegedly selling dangerous or illegal products online.

The commission is already examining Shein and Amazon and has started proceedings against AliExpress and Temu.

Online platforms might have to provide data before goods arrive in the EU, the Financial Times cites from a draft proposal.

Also Read: Amazon Attacks Temu and Shein’s Turf with New Low-Cost Storefront: Report

The EU weighed imposing a handling fee per package.

Online marketplaces are liable for knowingly selling illegal or hazardous products or failing to remove them promptly on detection.

Temu and Shein have previously acknowledged their compliance with the norms to the FT.

The EU imported 4.6 billion lower-value parcels in 2024, marking a four times growth from 2022. More than 90% came from China.

The proposal also abolished the exemption for goods worth less than 150 euros from paying duty.

Asian e-commerce platforms like Temu and Shein could generate $160 billion in sales by leveraging social media and affordable goods. The platforms are already bearing the brunt of tariffs amid growing geopolitical rivalry between the U.S. and China.

Mexican regulators have slapped a 19% tariff on goods imported by the platforms via courier from China after President-elect Donald Trump’s criticism of Mexico’s openness to Chinese imports.

Prior reports indicated that Temu would face the EU’s Digital Services Act regulations after reaching 45 million monthly users in Europe.

Prices Action: PDD stock traded lower by 6.31% to $104.81 premarket at the last cehck on Monday.

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