The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PDD Group’s fast-fashion e-commerce retailer Temu is likely to be subject to tough EU online content rules that already apply to Meta Platforms, Google, Elon Musk’s X and TikTok after its average monthly users in Europe rose above a key threshold.
Under the European Union’s Digital Services Act (DSA), companies with more than 45 million users are labelled very large online platforms (VLOPs) and are required to do more to fight illegal and harmful content as well as counterfeit products on their platforms.
Temu, which entered the EU market in April last year, said it had about 75 million average monthly active users in the European Union for the six months ended March 31 this year, according to an update on its site.
The European Commission said it was aware that Temu’s user numbers had exceeded the DSA threshold.
ADVERTISEMENT
“We are in contact with the platform in view of a possible designation in the future,” a Commission spokesperson said.
Chinese-founded fast-fashion company Shein last month reported 108 million average monthly active users in the 27-country bloc and is now in discussions with the Commission on its possible DSA designation.
By Foo Yun Chee; Editor: Susan Fenton
Learn more:
Temu-Owner PDD Jumps 15% After Revenue Beats Estimates Amid Overseas Push
PDD Holdings Inc.’s shares jumped 15 percent in New York pre-market trading Wednesday after the company reported stronger-than-expected revenue as it ramped up its overseas expansion.
The British musician will collaborate with the Swiss brand on a collection of training apparel, and will serve as the face of their first collection to be released in August.
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.