Brussels, February 7, 2025 – The European Commission has launched investigations into Chinese e-commerce giants Temu and Shein over concerns related to consumer protection, product safety, and misleading marketing tactics.
The probes aim to assess whether the companies are complying with EU regulations, as officials raise alarms about potentially unsafe goods, deceptive promotions, and tax loopholes that enable them to flood the European market with low-cost products.
The scrutiny comes amid growing concerns about the staggering volume of small-value shipments entering the EU. In 2023 alone, more than 4.6 billion small parcels—approximately 12 million per day—arrived in the bloc, many of them from Chinese platforms.
Under current EU customs rules, packages valued under €150 are exempt from import duties. Regulators believe this loophole has encouraged companies to split large orders into multiple smaller parcels, allowing them to evade import taxes while overwhelming customs authorities.
EU Proposes Tougher Customs Rules
In response, the European Commission is considering significant changes to customs regulations, including removing the €150 duty exemption entirely. Under the proposed rules, all shipments—regardless of value—would be subject to customs duties.
Additionally, Brussels is weighing the introduction of a customs fee to help finance the screening of billions of incoming parcels. Authorities argue that a large percentage of these products may be counterfeit or fail to meet EU safety standards, posing risks to consumers.
“The current system is being exploited at an unprecedented scale,” said a senior EU official. “We are looking at ways to ensure fair competition while also strengthening consumer protections.”
Although the exact amount of the proposed customs fee remains undetermined, EU policymakers suggest it could serve as a deterrent against excessive parcel splitting and help offset the cost of enhanced inspections.
Investigations Target Product Safety, Deceptive Promotions
The regulatory push follows months of heightened scrutiny of Chinese e-commerce platforms. In mid-2024, the Commission sent Shein a series of questions regarding its business practices as part of an ongoing investigation.
The company, which has rapidly expanded its presence in Europe, stated that it intends to fully cooperate with EU authorities.
Meanwhile, a separate probe into Temu has been underway since October 2024, focusing on allegations of misleading promotions and fake product reviews.
Regulators suspect that the platform may be engaging in deceptive advertising practices to boost sales, a violation of EU consumer protection laws.
Both companies have come under fire for their fast-fashion and low-cost product models, which critics argue contribute to environmental harm and exploit loopholes in trade regulations. The European Consumer Organisation (BEUC) has urged the EU to take firm action against platforms that fail to meet European safety and transparency standards.
A Broader Crackdown on Chinese E-Commerce
The investigations into Temu and Shein are part of a broader EU effort to regulate the influx of Chinese e-commerce goods.
Brussels has also expressed concerns over intellectual property violations, with many European businesses accusing Chinese platforms of selling counterfeit or imitation products.
As the European Commission moves forward with its investigations, industry analysts predict that stricter enforcement and regulatory changes could reshape cross-border e-commerce.
If the proposed customs overhaul is implemented, Chinese e-commerce giants may face higher costs and greater scrutiny, potentially altering their business strategies in Europe.
For now, EU regulators remain focused on their key priorities: ensuring consumer safety, curbing deceptive marketing, and closing tax loopholes that give foreign sellers an unfair advantage over European retailers.