The European Commission confirmed the penalty on Thursday, saying the Chinese e-commerce company did not properly identify and manage risks linked to products sold to EU consumers.

The case sits under the Digital Services Act, a law that governs large online platforms.

The Commission opened its investigation in 2024, shortly after Temu expanded further across Europe. It followed complaints from the European Consumer Organisation (BEUC) and 17 of its national members.

Regulators said those complaints pointed to unsafe goods circulating widely on the platform.

Officials also carried out mystery shopping tests. A high number of phone chargers failed basic safety checks, while several baby toys also contained chemicals above legal limits or created choking risks.

The EU said Temu did not go far enough in assessing how its systems might increase those risks. It pointed to product recommendation tools and influencer-linked promotions that could push more unsafe goods into view.

Henna Virkkunen, a European Commission official responsible for technology, criticised the company’s approach.

She said “the company’s assessment of its risks leaves regulators, users, and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu,”

“Now it is time for Temu to comply with the law,” she added.

The Commission said the platform must now submit a compliance plan by August 28, 2026. Officials will review the plan two months after submission to decide if Temu has met its obligations.

Temu responded to the decision and rejected parts of the findings. A spokesperson said: “Temu respects the objectives of the Digital Services Act and the need for clear, consistent rules across the digital economy. However, we disagree with the European Commission’s decision and consider the fine to be disproportionate,”

The company added: “The decision relates to our first DSA assessment in 2024 and does not reflect the current state of our systems. Temu engaged constructively with the Commission throughout the process and has since taken further steps to strengthen risk assessment, platform governance, and user protection,”

Temu also said it would continue to work with regulators and consider its options.

The penalty is the second enforcement action under the Digital Services Act. It is also the largest fine issued so far under the law. The first was against X, which faced a penalty over transparency issues.

The law requires large platforms to identify and reduce systemic risks. It also demands stronger oversight of illegal or harmful products, along with clearer information on how recommendation systems operate.

Beyond Temu, the EU investigation also revealed issues about low-cost imports from China. Officials have been placing focus on large online marketplaces as part of trade and consumer protection efforts.

Other platforms are also under review. Shein and AliExpress are both facing separate investigations linked to unsafe or counterfeit goods.

Meanwhile, JD.com is under examination over its planned purchase of German retailer Ceconomy, with regulators questioning whether foreign subsidies may distort competition.

There is also a policy debate inside the EU, with officials discussing new trade and industrial measures aimed at balancing competition with Chinese e-commerce firms and protecting local businesses.

The issue has also reached the global level. In the United States, Temu stopped shipping directly from China after a policy change closed a duty exemption on low-value imports.

The post Temu Fined $232 Million by EU Over Illegal and Unsafe Product Sales Under Digital Services Act appeared first on Tech | Business | Economy.

Shein accused Temu of using thousands of its product photographs to sell copied versions of Shein-branded clothing on Temu’s platform. 

The company told the court that Temu tried to benefit from Shein’s market position by reproducing images created by Shein employees.

“This was an attempt to steal a march on an existing participant in the market, and Temu has sought to obtain, we say, an unfair advantage,” Shein’s lawyer Benet Brandreth said in court.

The trial is expected to run for two weeks and is part of a case between both companies across several countries, including the United States.

During proceedings, Shein’s legal team said Temu had withdrawn part of its defence covering almost 2,300 disputed photographs. Brandreth compared the decision to “the defendant waiting to see if the witnesses will turn up, only to plead guilty”.

Temu denied the allegations and argued that Shein’s lawsuit was not simply about protecting copyright. Its lawyers said the case was aimed at slowing down a rival that has grown rapidly in global online retail.

Temu, owned by PDD Holdings, has also filed a counterclaim against Shein. The company is seeking damages after Shein secured a court injunction that forced thousands of Temu product listings offline.

At the centre of the counter-claim is Temu’s accusation that Shein tied suppliers into exclusive agreements, making it harder for competitors to access manufacturers. That competition law dispute is expected to go to trial next year.

The court case is happening at the same time that both companies are facing pressure from regulators in Europe and the United States. Authorities have increased investigation over supplier treatment, product safety, labour standards and the flood of low-cost parcels entering Western markets.

Temu is currently under investigation in the European Union over possible breaches of product safety regulations. Shein, meanwhile, is still being questioned about labour practices within its supply chain as it works towards a possible London stock market listing.

The companies have built huge international businesses by selling ultra-cheap fashion, accessories and household goods directly to shoppers online. Their rapid growth relied heavily on customs exemptions for low-value imports, which helped keep prices low.

That advantage has started to get weaker. The United States removed its de minimis customs exemption for low-value e-commerce parcels in 2025, increasing costs for retailers shipping directly from China. 

The European Union is also preparing to end similar exemptions in July 2026, a move that could affect the expansion plans of both companies.

The issue has already spread beyond Britain. Shein sued Temu in the United States last year over alleged copyright infringement, while Temu later filed its own case accusing Shein of disrupting its marketplace through what it described as “unwarranted notices”.

Although the London case focuses on copyrighted photographs and copied designs, the result could stretch further. 

The post Shein and Temu Clash in London Court Over Copyright, Competition Issues appeared first on Tech | Business | Economy.

This follows a €40 million penalty handed down by France just weeks earlier, making it the second such blow in little over a month.

At the centre of Italy’s ruling is Shein’s European arm, Infinite Styles Services Co. Limited, headquartered in Dublin. The AGCM’s investigation, which began last September, uncovered what it describes as “vague, generic, and/or overly emphatic” messaging on the company’s website regarding sustainability and corporate responsibility. 

In simpler terms, Shein told consumers one thing while doing another and Italy’s regulators are calling this greenwashing. 

Shein’s claims that its ‘evoluSHEIN by design’ collection features eco-conscious manufacturing and recyclable materials didn’t stand up to investigations. The fibres used in the garments, according to the AGCM, are not truly recyclable given current systems. 

Their final say is, “A fact that, considering the fibres used and currently existing recycling systems, is untrue.”

It’s a damning assessment that goes beyond marketing language. The authority noted that Shein’s emissions have actually increased in both 2023 and 2024, even as it publicly committed to cutting emissions by 25% by 2030 and reaching net zero by 2050. 

These promises now appear hollow, especially when paired with what AGCM called the “highly polluting methods” of ultra-fast fashion.

What elevates this case isn’t just the fine, it’s the context. Shein is not a boutique brand, but a global juggernaut with operations spanning Europe, Africa, and beyond. And in many of these regions, the pitch of “sustainable fashion” is both appealing and suspect. 

In countries where access to electricity is unreliable and poverty is widespread, such marketing begins to look more like exploitation than innovation.

Shein’s model, aggressive scaling via tech-driven logistics, mirrors that of many startups expanding into underregulated markets. 

But this case is a clear signal that Europe, at least, is drawing a line. Italy’s regulators went so far as to say that Shein carries an “increased duty of care” precisely because it operates in one of the most polluting industries on the planet.

And it leads to the question of how any innovation can truly be called inclusive when it’s built on extractive foundations.

For years, the fast fashion industry has hidden behind affordability, speed, and technology. But no amount of convenience can conceal what’s now being repeatedly exposed, an industry that, left unchecked, exploits both people and planet.

Italy’s ruling won’t sink Shein. But it may finally slow it down. And for the rest of the ecosystem—especially startups chasing scale—it offers a cautionary tale: growth without integrity won’t go unchallenged.

The post Shein Fined €1 Million in Italy for Greenwashing appeared first on Tech | Business | Economy.

The Directorate-General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF) announced the sanction after uncovering discount manipulation and misleading environmental ads on Shein’s French website.

The penalty follows a nearly year-long investigation into Infinite Style E-Commerce Co Ltd (ISEL), the company responsible for Shein’s sales in France. 

Inspectors analysed thousands of product listings from October 2022 to August 2023 and found that over half of the advertised “discounts” were not real. 

According to the agency, 57% of the deals offered no actual price reduction, 19% were exaggerated, and 11% were, in reality, price hikes disguised as markdowns.

France’s pricing law says any discount must reference the lowest price offered over the previous 30 days. But Shein routinely violated that rule. 

In some cases, the company hiked up prices just before applying the so-called discounts. DGCCRF said consumers were “deceived about the authenticity of discounts they could benefit from.”

Beyond pricing tricks, the probe also flagged Shein for vague and potentially misleading environmental claims, part of a growing European crackdown on “greenwashing” in fashion. 

The investigation concluded that Shein’s marketing failed to offer credible evidence for its sustainability claims, leading to worries about transparency in a sector already under scrutiny for its environmental footprint.

In a formal response, Shein said: “The antitrust agency had informed Infinite Style Ecommerce Co Ltd (ISEL) of breaches related to reference price and environmental regulations in March last year, and ISEL had taken corrective action within the following two months. This means that all identified issues were addressed more than a year ago.”

Despite Shein’s insistence that it resolved the problems swiftly, the French authorities didn’t back down. Officials say the fine was not just about past offences, but about sending a signal to the entire digital retail sector. 

France recently passed new legislation targeting ultra-fast fashion platforms such as Shein and Temu, aiming to curb both consumer deception and environmental harm.

The penalty is another blow to Shein, which is already facing global pressure over its business practices, from opaque supply chains to allegations of labour abuse. 

In early 2024, a coalition of 25 European consumer protection groups filed a complaint against the company with the European Commission, potentially paving the way for even stricter oversight across the EU.

This fine arrives at a sensitive moment for Shein, which is reportedly preparing for a stock market listing and expanding its physical retail footprint across Europe. 

While the company insists it’s playing by the rules, regulators are not convinced. France’s DGCCRF has confirmed that it will continue monitoring Shein’s operations closely to ensure long-term compliance.

The post Shein Hit with €40m Fine for Alleged Fake Discounts in France appeared first on Tech | Business | Economy.

Authorities in Brussels, alongside national consumer agencies under the Consumer Protection Cooperation (CPC) Network, have found that the way Shein does its business violates EU consumer laws. 

The retailer has been officially notified of the breaches and has been given a one-month deadline to respond. If its response is unsatisfactory, enforcement actions, including heavy financial penalties, are on the table.

The EU Commission stated, “Shein now has one month to reply to the CPC Network’s findings and propose commitments on how they will address the identified consumer law issues. Depending on Shein’s reply, the CPC Network may enter a dialogue with the company.”

This development follows an earlier alert from February, where both Shein and another Chinese e-commerce platform, Temu, were cautioned about the sale of hazardous and substandard products. 

Both platforms were told they would be held liable if such products continued to circulate across EU markets.

Shein, which has surged in popularity by selling cheap clothing directly to customers, is now under pressure to align with European standards. The company’s response has so far been measured. 

A spokesperson said, “Our priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience.” They also added that Shein is cooperating with national authorities and the EU Commission.

Still, EU regulators aren’t banking on promises. If Shein fails to satisfy the CPC Network’s concerns, member states are empowered to take direct enforcement action. 

That includes issuing fines calculated based on Shein’s annual revenue in each country where violations occur. This is about the integrity of Europe’s digital marketplace.

Adding to the company’s challenges, the EU is preparing to impose a €2 handling fee on low-value e-commerce shipments. For a platform that thrives on volume and low prices, this new proposal could eat into profit margins and complicate logistics.

Shein may also fall under the purview of the Digital Services Act, a broad regulatory framework aimed at forcing large online platforms to take more responsibility for the goods and content they allow.

That would bring with it tougher obligations, oversight, and potential penalties if Shein is found lacking.

The post EU Warns Shein: Clean Up or Face Sanctions appeared first on Tech | Business | Economy.

While both companies have benefitted from the de minimis rule, which allowed imports valued under $800 to enter the U.S. tariff-free, their strategies for adapting to the changes vary.

The de minimis rule has been helpful for both Shein and Temu, helping them expand their presence in the U.S. over the past few years.

A 2023 report revealed that Chinese retailers, including these two, accounted for over 30% of all daily packages entering the U.S. under this provision. 

However, with tight rules from the Biden administration, both companies have started adjusting their operations to reduce reliance on the rule. While Temu has made faster moves to diversify its shipping strategy, Shein has been more dependent on direct air shipments from China.

Temu, owned by PDD Holdings, assertive in modifying its shipping model. The company moved towards a semi-managed approach, which is akin to Amazon’s business strategy. This involves sending goods in bulk to overseas warehouses rather than shipping directly to customers. 

As a result, by the end of 2023, half of Temu’s U.S. sales were fulfilled from local warehouses, according to estimates. Temu also increased its reliance on sea freight, a strategy that reduces the volume of items being imported under the de minimis threshold. 

Basile Ricard, the operations director at Ceva Logistics Greater China, noted that this change, particularly towards bulkier and more valuable items, became more apparent in the latter half of last year.

In contrast, Shein continues to rely on air freight for its fast-paced, ultra-fast fashion business, which demands quick turnaround times for new trends. While the company has taken steps to open local distribution centres in places like Illinois, California, and Seattle, it remains primarily reliant on its Chinese manufacturing base. 

Shein has, however, started diversifying its supply chain, adding suppliers in countries like Brazil and Turkey, a move that may speed up due to the new tariffs.

The impact of Trump’s executive order has created uncertainty in the express shipping industry, with confusion following a reversal by the U.S. Postal Service, which initially decided not to accept parcels from China and Hong Kong. 

Nomura analysts predict that the volume of de minimis shipments could decrease by as much as 60%, leading to higher prices for American consumers purchasing from Shein, Temu, and other international e-commerce platforms.

In 2024, approximately 1.36 billion shipments entered the U.S. under the de minimis provision, a 36% increase compared to 2023, according to data from Customs and Border Protection (CBP). With the new tariffs now in place, it’s anticipated that consumers will face higher costs, as both Shein and Temu are likely to pass on the increased shipping expenses.

Experts believe that while the immediate impact of the tariffs will be felt, especially in the short term, both Shein and Temu are well-positioned to adapt. Tech analyst Rui Ma said, “I think there will be real impact, especially in the short term, but it is not catastrophic. China has the most competitive e-commerce operators and the most advanced supply chain. Short of a total ban or something crazy like that, I think they will be able to figure it out.”

The new tariffs, which specifically target imports from China, Mexico, and Canada, have led to talks about the implications for global trade. Other countries may retaliate, further complicating the international trade landscape. 

These come at a time when global trade tensions are already high, adding another layer of complexity for companies like Shein and Temu.

For U.S. consumers, the immediate effects are likely to include higher prices and possible delays in receiving their purchases. With Shein and Temu adjusting their strategies to scale through the new tariffs, their ability to diversify supply chains and adopt alternative shipping methods will be crucial to mitigating the impact.

In the longer term, both companies will need to continue refining their logistics and supply chain strategies. Shein may further diversify its manufacturing base and expand its use of local warehouses, while Temu will likely continue investing in bulk shipping and sea freight to stay competitive.

Ultimately, while the tariffs will challenge both companies, their ability to adapt quickly, given their sophisticated supply chains, means they are likely to remain resilient in the face of these regulatory changes.

The post Shein and Temu Face Challenges as U.S. Imposes New Tariffs on Low-cost Imports appeared first on Tech | Business | Economy.

The Temu app dethroned TikTok in 2023 after the latter held the top spot in 2022.

Meanwhile, TikTok, which currently has regulatory challenges in the U.S., has dropped to the third position. The app was overtaken by Instagram Threads, a platform launched by Meta as a direct competitor to Twitter. Threads climbed to the second spot this year, after being the third most-downloaded app in 2023.

Apple’s annual list reveals the most downloaded apps and games on its platform, providing insight into consumer preferences. 

Among the highlights for 2024 is the growth of ChatGPT, which has climbed to fourth place in the U.S. App Store rankings. This is a win for the chatbot, which was launched on iPhone in May 2023 but did not feature in last year’s top 10.

Meta’s top place continues, albeit with some decline in ranks. Instagram and WhatsApp occupy the sixth and seventh spots, respectively. Other apps in the top 10 include ByteDance’s video editing tool CapCut, YouTube, and Google Maps. 

Shopping platform Shein secured the 12th position, while Facebook, once a perennial leader, landed at No. 13.

The remaining top 20 apps for 2024 include Telegram, Snapchat, Cash App, Spotify, Max, McDonald’s, and Amazon.

Gaming Trends in 2024

In the gaming category, Block Blast!, a Tetris-inspired game, was the most downloaded free game in the U.S. for 2024. It was followed by Monopoly Go!, Roblox, Call of Duty: Warzone Mobile, and Township.

The top title in Apple Arcade was NBA 2K24 Arcade Edition, with other favourites including Snake.io+, Hello Kitty Island Adventure, Sneaky Sasquatch, and Bloons TD 6+.

Apple’s annual lists bring a glimpse into changing user preferences and the changing space of app usage. While long-established apps like TikTok and Facebook see gradual declines in popularity, newcomers and niche applications are gaining traction. 

The full rankings, including top paid apps and games, are available on the App Store’s Today page.

The post Temu is the Most Downloaded U.S. App in 2024, TikTok Slips to Third appeared first on Tech | Business | Economy.

This curated list unveils the highest valued startups from around the world, providing insights into their valuations and the substantial funding they’ve garnered.

Max Bramwell, founder of FounderPass, remarks on how these startups can inspire a new wave of entrepreneurial ambition worldwide.

1. ByteDance (China)

• Valuation: $225 billion
• Funding: Over $9 billion

As Max explains, ‘You might never have heard of Chinese tech giant ByteDance, but I can guarantee you have heard of the platform that made them their huge fortune – social media sensation TikTok.’

ByteDance’s valuation of $225 billion reflects TikTok’s insane popularity and its dominance in the social media and content creation space.

ByteDance continues to innovate and shape digital experiences, emphasizing China’s influence on the global tech landscape.

2. SpaceX (United States)

• Valuation: $180 billion
• Funding: Over $9.8 billion

SpaceX, founded by Elon Musk, is a pioneer in privately-funded space exploration. With a valuation of $180 billion, SpaceX’s achievements in rocket technology and space missions showcase its commitment to advancing humanity’s presence beyond Earth.

The company’s ambitious projects highlight the potential for the involvement of private enterprises in shaping the future of space.

3. OpenAI (United States)

• Valuation: Estimated over $80 billion
• Funding: $11.3 billion

OpenAI, an artificial intelligence research laboratory, plays a crucial role in advancing AI technologies.

They are of course most famous for their groundbreaking chatbot, ChatGPT. Despite some controversy earlier this year, the company is still going strong; the organization focuses on developing safe and beneficial AI, contributing to the global conversation on responsible AI deployment.

4. SHEIN (China)

• Valuation: Over $66 billion
• Funding: Over $4 billion

SHEIN, a Chinese e-commerce giant, has rapidly grown to become a global fashion powerhouse. Max says, ‘SHEIN’s popularity and market presence in the fashion industry showcase China’s influence on the global retail landscape – although some have objected to the brand’s popularity, stating that its practices promote the ecologically damaging trend of ‘fast-fashion’.’

5. Stripe (United States)

• Valuation: $50 billion
• Funding: Over $8 billion

Stripe, a U.S.-based fintech company, has revolutionized online payment processing, providing essential financial infrastructure for Internet businesses. Now becoming something of a household name for anyone dealing in e-commerce, Stripe’s success reflects the increasing importance of secure and easy digital payment methods and fintech solutions in the modern economy.

6. Databricks (United States)

• Valuation: $43 billion
• Funding: Over $4.2 billion

Databricks has emerged as a leader in helping organizations harness the power of data. With a valuation of $43 billion, Databricks’ platform facilitates data-driven decision-making. As Max says, ‘The success of Databricks highlights just how crucial accurate and useful data is to a huge range of industries in modern business.’

7. Revolut (United Kingdom)

• Valuation: $33 billion
• Funding: Over $1 billion

Revolut, a UK-based fintech company, has disrupted traditional banking with its innovative financial services. As Max explains, ‘Its valuation of $33 billion makes it a ‘unicorn’, which in investing terms means a company that has a value of over $1 billion while still being privately owned.’ Revolut’s success reflects the global demand for modern, user-friendly financial solutions, and its emphasis on providing users with borderless, digital financial services has positioned it as a leading player in the fintech revolution.

8. Fanatics (United States)

• Valuation: Estimated over $31 billion
• Funding: Over $4.9 billion

Fanatics, a U.S.-based sports merchandise company, has disrupted the sports retail industry in a big way. Fanatics’ success in e-commerce and licensed sports merchandise highlights the evolution of retail and fan engagement in the digital age.

9. Canva (Australia)

• Valuation: $25.4 billion
• Funding: Over $570 million

An Australian graphic design platform that’s now becoming a household name, Max says, ‘Canva has transformed the way individuals and businesses create visual content.’ Boasting a valuation of $25.4 billion, Canva’s user-friendly design tools have gained widespread popularity among graphic designers and amateurs.

10. Epic Games (United States)

• Valuation: Estimated over $22.5 billion
• Funding: Over $7 billion

As the creator of the super-popular game Fortnite, Epic Games is a major player in the gaming industry. Epic Games’ influence on gaming and interactive media is hugely significant, especially through their creation of the versatile Unreal Engine, a system used by many developers to streamline the process of game design.

Max says,

‘As the digital landscape evolves, these high-impact startups not only embody innovation but also symbolize the boundless opportunities that lie ahead. Their soaring valuations and robust funding underscore the immense potential for growth in the global business arena.’

The Highest Valued Startups in the World

1. ByteDance (China)
2. SpaceX (United States)
3. OpenAI (United States)
4. SHEIN (China)
5. Stripe (United States)
6. Databricks (United States)
7. Revolut (United Kingdom)
8. Fanatics (United States)
9. Canva (Australia)
10. Epic Games (United States)

[Featured Image Credit]

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