The Chinese e-commerce company Temu filed a lawsuit against its Chinese competitor Shein, accusing it of violating US antitrust laws when working with apparel manufacturers.
The lawsuit, filed in a US federal court in Boston, alleges that Shein abused its market power to force manufacturers to avoid Temu.
The complaint said that Shein “forces manufacturers to sign oaths of allegiance certifying they will not do business with Temu”.
According to the company, Shein’s practices have resulted in high prices and less choice for customers.
A Shein spokesman responded to the lawsuit, telling Reuters that the lawsuit was unfounded and that the company would “vigorously defend itself.” The lawsuit is the latest development between the companies, which continue to vie for supremacy. The two fast-fashion giants are already in a trial in Chicago, where Shein has filed a lawsuit against Temu alleging that the Company worked with influencers to discredit Shein on social media.
Shein is also facing legal pressure from a group of independent designers who sued the company last week, accusing it of “large-scale and systematic theft of intellectual property” and extortion-related rights violations.
Aside from the various challenges Shein has faced over the past year, Temu has emerged as one of its biggest contenders.
This translated post originally appeared on FashionUnited.com