Price gag? Cartel office investigates Temu

The German Federal Cartel Office is investigating the Chinese trading platform Temu. The investigation concerns the conditions for traders used on the online marketplace for Germany, as well as Temu's actual behavior towards traders. The company itself does not act as a seller but operates temu.com as a platform for third parties.

“We are investigating the suspicion that Temu could set unauthorized conditions for the pricing of retailers on the German marketplace,” says Andreas Mundt, President of the German Federal Cartel Office. “Such requirements could constitute significant restrictions of competition and ultimately also result in price increases on other sales channels.”

Trade association criticizes price regulations

The authority's attention was drawn by a complaint from the German Retail Association (HDE) about Temu. According to the complaint, the Chinese online marketplace requires retailers to offer products for no more than 85 percent of the price of similar products on other platforms. In addition, the platform reserves the right to intervene directly in pricing and make the final decision.

As fees, customer structure, and other parameters differ, such clauses can lead to an overall increase in the price level for end customers. In any case, such conditions restrict competition.

Temu told heise online that it complies with all applicable regulations and emphasizes good cooperation with all parties involved. “We are confident that all concerns in this regard will be successfully resolved.”

The EU Commission is also investigating the company. It accuses Temu of inadequately fulfilling its obligations under the Digital Services Act (DSA). Through test purchases, among other things, the investigators have come to the conclusion that there is a “high risk” for European consumers of encountering illegal products at Temu. Among other things, baby toys and electronics were supplied that contravened EU regulations.

The German proceedings were opened on Wednesday against the Dublin-based company Whaleco Technology Limited, which is Temu's European subsidiary. Temu has been operating in Germany since 2023 and already has 19 million customers here, according to its information. German dealers have also been welcome since 2024. The dealer contract conditions can only be viewed after registration.

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