The Bundeskartellamt has initiated a procedure against the company behind the online marketplace Temu, the Whaleco Technology Limited. The conditions for dealers and other behavior from TEMU to the providers are to be checked, according to a statement. Whaleco Technology Limited is based in Dublin in Ireland.
“We suspect that Temu could make inadmissible requirements for the pricing of the dealers on the German marketplace,” said Andreas Mundt, President of the Federal Cartel Office. “Such requirements could represent significant restrictions on competition and ultimately also result in price increases on other sales channels.” It is also examined whether Temu himself sets end sales prices.
This is how Temu reacts
At first, Temu did not publicly comment on the allegations. On request, a company spokesman only announced: “We adhere to the applicable laws and regulations of the countries in which we work.” One is confident that they can clear up possible concerns.
The trade association Germany (HDE) had already lodged a complaint with the Federal Cartel Office in April. The accusation: Temu deprives traders’ authorization sovereignty and stipulate that their prices may be a maximum of 85 percent of what they would achieve for a comparable product on other platforms.
Open for German dealers since 2024
According to the Cartel Office, more than 100 million users visit Temu’s European online marketplaces every month. The Chinese shopping portal has been active in Germany since 2023, and in 2024 it was also open to German dealers. Temu was able to increase its popularity in this country rapidly within a short time and is now one of the highest sales online marketplaces.
Despite the success, the company is strongly criticized. Politicians, sales representatives and consumer advocates complain, among other things, product quality, lack of controls and unfair competitive conditions and demand stricter regulation.
A EU procedure is currently underway against Temu. The Commission sees a high risk for consumers to encounter illegal products. You could find baby toys or electronic products that do not correspond to EU rules. Temu therefore threatens a punishment.