Germany’s competition watchdog has initiated proceedings against the Whaleco Technology Limited group, which is behind the Chinese online retail giant Temu.
It said that conditions for traders on Temu’s platform and the company’s treatment of suppliers are to be reviewed, a statement from the Federal Cartel Office said on Wednesday.
“We are investigating the suspicion that Temu could be imposing unauthorised conditions on the pricing of retailers on the German marketplace,” said Andreas Mundt, the authority’s president.
“Such requirements could constitute significant restrictions of competition and ultimately also result in price increases on other sales channels,” he added.
Temu is one of the largest online retailers in Germany.
Several million people in the European Union shop on the platform.
In July, the European Commission released preliminary findings of a probe into Temu, finding the company is violating EU laws by not doing enough to tackle the sale of illegal products on its platform.
