Germany Investigates Temu Over Merchant Pricing Controls

Germany’s cartel office has launched an investigation into Temu for possible pricing control on its platform. The agency is concerned Temu may influence how third-party sellers set their prices. Officials worry this could restrict competition and push prices higher on other sales channels.

The investigation targets Whaleco Technology Limited, the Dublin-based company that operates Temu in Germany. The office said Temu’s practices might impose unfair pricing requirements on merchants. If true, these actions could harm consumers and limit fair market competition.

Temu responded by stating it follows all relevant laws and regulations in every market. The company expressed confidence that it will resolve any concerns raised by the authorities. Temu’s platform offers a wide range of products to millions of users.

According to the cartel office, Temu’s marketplace has been open to German sellers for about a year. Currently, Temu has 19.3 million active users in Germany alone. Across Europe, more than 100 million users visit the platform every month.

The investigation is ongoing as regulators continue to examine Temu’s business practices. They aim to ensure fair competition and protect consumer interests in the fast-growing e-commerce sector. The outcome could impact how e-commerce platforms manage third-party sellers in Germany and beyond.