The European Commission has opened a formal investigation into Temu to determine whether the fast fashion retail platform violated the Digital Services Act.

The investigation will probe concerns that the site is doing too little to stop the sale of illegal products, including counterfeits. It will also look at dangers from the platform’s use of gamification and ‘potentially addictive design’ that could hurt users’ ‘physical and mental well-being, said the European Commission in its press release.

Temu, and fellow fast fashion giant Shein, are designated ‘Very Large Online Platforms’ owing to their large number of users in the EU. This subjects the companies to more stringent requirements under the Digital Services Act including the tackling of illegal and harmful content on their platforms. They must assess “systemic risks” such as counterfeit goods, illegal products, and items that infringe on intellectual property rights. Temu’s growth has been rapid, registering 75 million users in the EU in April, rising to 92 million in September.

‘We want to ensure that Temu is complying with the Digital Services Act. Particularly in ensuring that products sold on their platform meet EU standards and do not harm consumers,’ EU tech chief Margret Vestager said in a statement.

The Commission launched the investigation based on information it gathered from its initial requests, as well as from third party sources. The probe is unlikely to come as a surprise to Temu, who has been accused of selling counterfeits on numerous occasions. Earlier this year British footwear brand Dr Martens filed a lawsuit against Temu, accusing it of trademark infringement. Temu was accused of engaging in paid Google advertising to promote boots sold on its platform, targeting keywords including “Dr. Martens” and “Airwair”, both of which are registered trademarks of Dr Martens.

Temu has reportedly been very co-operative in the investigation thus far and has stated;

‘Temu takes its obligations under the DSA seriously, continuously investing to strengthen our compliance system and safeguard consumer interests on our platform. We will cooperate fully with regulators to support our shared goal of a safe, trusted marketplace for consumers.’

Breaches of the Digital Services Act can result in fines of as much as 6% of global revenue.