Alibaba Rival Temu Joins Tech Giants List Under EU Scrutiny, Crosses User Threshold for Enhanced Regulation

Anusuya Lahiri

April 15, 2024

Alibaba Group Holding Limited (NYSE:BABA) rival PDD Holdings Inc’s (NASDAQ:PDD) Temu will be subject to stringent EU online content regulations that currently affect major tech firms like Meta Platforms Inc (NASDAQ:META), Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, Elon Musk’s X, and TikTok.

This development follows as Temu’s average monthly users in Europe surpassed the significant threshold of 45 million.

According to the European Union’s Digital Services Act (DSA), platforms with over 45 million users are considered massive online platforms (VLOPs) and must undertake more significant efforts to eliminate illegal and harmful content and counterfeit products on their sites, Reuters reports.

Also Read: Amazon Amps Up Delivery Speed and Trust to Tackle Alibaba Rivals Temu and Shein’s Rapid US Expansion

Having launched in the EU market in April of the previous year, Temu reported approximately 75 million average monthly active users in the European Union for the six months ending March 31 this year.

The European Commission has acknowledged that Temu’s user figures have crossed the DSA threshold and has initiated contact with the platform regarding a potential future designation as a VLOP.

The Chinese-founded fast-fashion giant Shein also reported having 108 million active users on average in the 27-country bloc last month. Shein is engaging with the Commission about its possible designation under the DSA.

In March, PDD reported fourth-quarter fiscal 2023 revenue growth of 123% year-on-year to $12.52 billion, beating the consensus of $11.01 billion. The adjusted earnings per ADS of $2.40 increased from CNY8.34 Y/Y, beating the consensus of $1.60.

PDD stock gained 68% in the last 12 months. Investors can gain exposure to the stock via Global X MSCI China Consumer Discretionary ETF (NYSE:CHIQ) and Invesco China Technology ETF (NYSE:CQQQ).

Price Action: PDD shares traded higher by 1.09% at $116.76 in the premarket on the last check Monday.

Also Read: Microsoft Decouples Teams from Office Globally in Response to Antitrust Concerns: Report

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

Recommended

Bitcoin's Pullback Could Be Your Gain - Ad

New Number One Copper Start Alert - Ad

The Next 'Ozempic Moment' Could Be in Heart Disease - Ad

Cathie Wood-led Ark Invest made significant trades involving Tesla, Pony AI, TSMC, and Baidu, highlighting their strategic positioning in tech & AI sectors.

Space forecasters say severe solar storms could hit Earth and trigger auroras

NEW YORK (AP) — Space weather forecasters issued an alert on Tuesday for incoming severe that could produce and temporarily disrupt communications.

Copper Is Tight, Silver Is Rising - And This Early Nevada Play Hits the Timing Perfectly

Copper Is Tight, Silver Is Rising - And This Early Nevada Play Hits the Timing Perfectly - Ad

AI, electrification, battery storage, and data centers are pushing copper and silver demand sharply higher, even as supply stays tight. This region in Nevada offers rare multi-metal potential, and a new company has secured land in a district the surging district. It's one of the cleanest timing setups in the sector right now.

Noem Says National Guard Shooting Suspect Was Radicalized In US

DHS Secretary Kristi Noem says that the suspect in the fatal shooting of a National Guard member in Washington was radicalized domestically.

Jim Cramer's '10 Stocks To Own For The Future' In 2000 Cost This Redditor A Decade Of Retirement, Says Having To Work 10 More Years Was 'Painful'

A Reddit user slammed Jim Cramer's stock picks at the peak of the Dot-Com bubble, saying that the CNBC host's suggestions cost him a decade of retirement.

First Drug to Show Breakthrough Myocarditis Data. Analysts See Potential 7-10x Upside.

First Drug to Show Breakthrough Myocarditis Data. Analysts See Potential 7-10x Upside. - Ad

This biotech just delivered a medical first in myocarditis and has a Phase 3 trial fully funded into 2027. Wall Street targets imply massive revaluation ahead.

Jim Cramer Notes 'Horrible' Bitcoin Start To December As BTC Falls By $4,000 In Minutes

Bitcoin (CRYPTO: BTC) is down almost 6% in the past 24 hours after a sudden wave of long-position liquidations erased nearly $4,000 from price in a

Kevin O'Leary Slams Trump's $2,000 Tariff Rebate Checks: 'Everyone Loves The Idea Of A Free Check'

Investor Kevin O'Leary calls Trump's tariff rebate checks out on X, saying it is a "quick band-aid" in a tough economy.

Why Are Wall Street Insiders Moving Their Money to This One Asset?

Why Are Wall Street Insiders Moving Their Money to This One Asset? - Ad

Something far more consequential for your money than tariffs is unfolding behind the scenes... Tucked inside this overlooked directive is a plan set to be executed for the first time in in U.S. history. One Stansberry Research's Senior Partner says it's set to trigger a rare window for potentially explosive gains in ONE asset immediately. (Not AI or crypto). Wall Street insiders are already positioning themselves... and he insists you should, too, before it's too late.

Paramount Skydance Stock Climbs After Q3 Report: Here's Why

Here's a look at the Q3 earnings report from Paramount Skydance.

Tax-Free Student Loan Forgiveness Expires In 2026, Who Owes More Next Year?

The American Rescue Plan Act of 2021 will make most student loan forgiveness tax-free until 2025, then borrowers may owe thousands in taxes.

Nevada's Mining Renaissance Is Accelerating - And This Early Opportunity Is Well Positioned

Nevada's Mining Renaissance Is Accelerating - And This Early Opportunity Is Well Positioned - Ad

Nevada's Walker Lane belt has produced 50M+ ounces of gold since the 1800s, and it's waking up again. One of the neighborhood's latest successes just secured over $6M in U.S. support and is up more than 300% YTD. Now a new early-stage explorer has moved in next door.

Elon Musk Says Bitcoin Is Based On Energy, The 'True Currency' — Tesla CEO Says His 'Interesting Side Quest' DOGE Is Still Going On

Tesla and SpaceX CEO reiterated in an interview aired Sunday that Bitcoin (CRYPTO: BTC) is based on energy, categorizing it among &#8

Cathie Wood Dumps $11.6 Million Worth Of Tesla Stock: Here Is What Ark Purchased Instead

On Wednesday, Cathie Wood-led Ark Invest made significant trades involving Tesla Inc. (NASDAQ:TSLA), Coinbase Global Inc.

Is Big Pharma's Next Target Already in Play?

Is Big Pharma's Next Target Already in Play? - Ad

A small biotech may have cracked one of medicine's biggest problems-how to deliver cancer drugs safely and effectively. With patented technology and promising early data, it's already catching the attention of Big Pharma.

Ukrainian Naval Drones Cripple Two Russian Oil Tankers In Black Sea, Disrupt Moscow's Shadow‑Fleet Operations

Ukrainian naval drones struck 2 sanctioned tankers in Black Sea, critically damaging both and crippling a key Russian oil‑transport route.

How Tyson's Chicken Business Will Offset Beef Weakness

Tyson shares rise as pricing catch-up expected to ease cost pressures; chicken strength offsets beef headwinds amid stable feed costs.

Urgent Copper Stock With Strong Catalysts

Urgent Copper Stock With Strong Catalysts - Ad

Quebec discovery. Strong grades. Roads and hydro in place. Funding secured for a busy drill calendar. Each assay can build scale and tighten the window for early entries as EVs and data centers pull harder on copper. Do not wait.

FDA's Prasad Cites Alleged Child COVID Shot Deaths in Push for Stricter Rules

FDA's new vaccine strategy tightens approval rules after internal findings linked COVID-19 shots to several child deaths.

Rand Paul Slams GOP's Shift From Fiscal Conservatism: They Voted To Add '$5 Trillion' To The Debt Ceiling — Calls It 'Decimation'

Sen. Rand Paul (R-Ky.) slammed the Republican Party for abandoning the fiscal discipline it once championed, while accusing his colleagues of embracing massive governmental deficits and greenlighting spending levels they previously opposed.

A Tiny Biotech Just Posted 10× Stronger Cancer Results

A Tiny Biotech Just Posted 10× Stronger Cancer Results - Ad

Early studies show this breakthrough delivery platform would make cancer treatments safer and more powerful. Now, with Big Pharma watching closely, investors are starting to take notice of what could be the next major biotech story.

Warren Buffett Won't Buy Gold, And This Valuation Guru Agrees: 'It's A Collectible, Not An Asset'

Why don't Buffett & Damodaran buy gold? The valuation guru explains why gold is a 'collectible,' not an asset you can value.

XRP Jumps 10% In A Week As First-Ever Spot ETF Eyes Thursday Launch

XRP (CRYPTO: XRP) surged 10% over the past seven days amid mounting anticipation for the first-ever XRP ETF, which could launch as early as this week.

Bitcoin's Pullback Could Be Your Gain

Bitcoin's Pullback Could Be Your Gain - Ad

More than 70 cryptos have recently outperformed Bitcoin and it's not the first time. During crypto's last bull market the top 100 coins NOT named Bitcoin went up by 174%. Now the signs show that it's happening again. This could be a chance to strike gold in some far corners of the crypto market.

Yemen's Houthi rebels signal that they've stopped attacks on Israel and Red Sea shipping

DUBAI, United Arab Emirates (AP) — Yemen’s Houthi rebels are signaling they’ve stopped their as a holds in the Gaza Strip.

Elon Musk Doubles Down On Solar-Powered AI Satellites, Predicts 'Convergence' Between Tesla, SpaceX, xAI — 'Tesla Is The World Leader In…'

Elon Musk shares plans for solar-powered AI satellites in orbit, touts Tesla as world leader and targets Optimus scale production next year.

New Number One Copper Start Alert

New Number One Copper Start Alert - Ad

EVs and AI devour copper. Supply cannot keep up. A Quebec discovery with high grade, infrastructure, and cheap power is funded to drill through the year. Catalysts are lining up. Institutions are circling. Move now while it is still early.

Analyst Sees Strong Medtronic Momentum Through 2026 With Buy Rating Intact

BofA expects Medtronic to post over 5% second-quarter revenue growth and maintain strong momentum through 2026, driven by robust procedure trends.

Weekend Round-Up: Airbus Chaos, BYD's Massive Recall, Tesla's Free FSD Rides, Rivian's Tax Credit Silver Lining And More

From emergency aircraft recalls to massive vehicle recalls in China, to free self-driving rides in Europe, the past week was buzzing in the auto and tech sector.

The Next 'Ozempic Moment' Could Be in Heart Disease

The Next 'Ozempic Moment' Could Be in Heart Disease - Ad

Just as Ozempic rewrote the obesity playbook, this breakthrough data could transform how we treat inflammatory heart disease. Fully funded. Multiple catalysts. $280B market opportunity.

Why 12-Year-Old Mark Zuckerberg Built A Little Messaging Network For The Family Member Who Reportedly Wrote Him $100,000 Check To Start Facebook

Preteen Mark Zuckerberg's early coding projects, including the family messaging system ZuckNet, combined with strong family support and a reported $100,000 check from his father, foreshadowed his creation of Facebook and Meta's later rise to a $1.54 trillion company.

Air travelers face frustration as FAA's further drop in flights takes effect

Air travelers could face as busy U.S. airports need to meet a higher Federal Aviation Administration target for reducing flights Tuesday after already canceling thousands to scale back demands on the nation’s aviation system during the .

Copper Is Tight, Silver Is Rising - And This Early Nevada Play Hits the Timing Perfectly

Copper Is Tight, Silver Is Rising - And This Early Nevada Play Hits the Timing Perfectly - Ad

White House's 50-year mortgage proposal has one notable benefit but a number of drawbacks

NEW YORK (AP) — The White House says it is considering backing a 50-year mortgage to help alleviate the home affordability crisis in the country. But the announcement drew immediate criticism from policymakers, social media and economists, who said a 50-year mortgage would do little to resolve other core problems in the housing market, such as a lack of supply and high interest rates.

The Key to a Winning 401(k)

: when to start, how much to save, and where to invest. The investing decision has drawn more attention as government regulators work to open 401(k) plans to alternative assets such as .

First Drug to Show Breakthrough Myocarditis Data. Analysts See Potential 7-10x Upside.

First Drug to Show Breakthrough Myocarditis Data. Analysts See Potential 7-10x Upside. - Ad

This biotech just delivered a medical first in myocarditis and has a Phase 3 trial fully funded into 2027. Wall Street targets imply massive revaluation ahead.

OpenAI's Partners Rake Up $96 Billion Debt as AI Industry's Borrowing Trend Escalates

Companies supplying data centers, chips, and processing power to OpenAI have racked up a staggering $96 billion in debt to fund their operations.

Weekend Round-Up: TSMC Trade Secrets Lawsuit, Google Deepmind Scientist's Market Slam, Baidu Layoffs, Amazon's Court Victory And More

From allegations of trade secret leaks at Taiwan's TSMC to layoffs at Baidu Inc, here's a recap of tech news this week.

Why Are Wall Street Insiders Moving Their Money to This One Asset?

Why Are Wall Street Insiders Moving Their Money to This One Asset? - Ad

Why Is Occidental Petroleum Stock Gaining Tuesday?

Analysts highlight OXY's robust earnings, production guidance, and expanded resource base as key growth drivers.

Trending Now