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

Weiss Gold Veteran Makes Shocking New Call - Ad

The Smart Money Copper Trade - Ad

Cyber Weekend Sale! 85% Off Disruptors and Dominators! - Ad

Popular

New York advances casinos at a Bronx golf course and near Mets stadium

NEW YORK (AP) — Casinos proposed for a golf course in the Bronx and next to the New York Mets’ ballpark are poised to cash in on a for the New York City area.

Trump Threatens Air Traffic Controllers Amid Shutdown Chaos; Pete Buttigieg Says He 'Wouldn't Last Five Minutes' in Their Job

President Donald Trump has demanded that all air traffic controllers return to work as the nation's aviation system endured another wave of mass flight cancellations, caused by staffing shortages due to the prolonged government shutdown.

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.

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.

China's 'Singles' Day' shopping festival a gauge of Beijing's effort to get consumers to spend more

HONG KONG (AP) — Alice Zhang, a 29-year-old marketer in the southern Chinese city of Guangzhou, has spent only roughly half what she did last year during the festival, switching to cheaper choices and giving up on buying new shoes after pay was cut by more than 20%.

The $43B Big Pharma Story is Starting Over-With a New Player

The $43B Big Pharma Story is Starting Over-With a New Player - Ad

Big Pharma once paid $43B for a small biotech with a similar platform. Now, a new company is following that same playbook, leveraging its patented delivery technology to attract partnerships and near-term revenue potential.

Trump's Approval Rating Hits Lowest Since Returning To Office, With Support Falling Among Republicans, Independents

Trump's approval rating hits new low as Republican and independent support drops. Economy, immigration, and budget handling are major concerns.

Chuck Schumer Says 41-Day Shutdown Has Exposed Trump's 'Cruelty,' Accuses President Of Holding Innocent Kids, Veterans As 'Political Hostages'

Schumer condemns Trump's 'cruelty' behind longest shutdown in U.S. history, as thousands of Americans suffer from furloughs and disrupted services.

The Next Biggest Bull Run In Over 50 Years

The Next Biggest Bull Run In Over 50 Years - Ad

Gold has hit all-time highs, breaking $4,000 an ounce - but history shows it could be on the verge of its biggest bull run in over half a century... triggered by a likely major event, eerily similar to what happened in the 1970s. (It's NOT inflation or anything you're likely expecting.) Now, a top analyst says you can capture ALL of the upside without touching a risky miner or a boring exchange-traded fund. He sees extraordinary potential gains long term with very little risk.

Silver Breaks Out In A Short Squeeze, Rising Yields In Japan Hits Stocks and Bitcoin

Rising Yields In Japan

Swiss prosecutors target Credit Suisse, now part of UBS, over Mozambique money laundering case

GENEVA (AP) — Swiss authorities on Monday said they have indicted a former official at Credit Suisse — now part of Swiss banking titan UBS — for alleged money laundering in a case involving state companies in Mozambique, and charged the bank with not doing enough to stop it.

85% Off: Unlock the 5 gold stocks that could surge

85% Off: Unlock the 5 gold stocks that could surge - Ad

Gold pushed past $4,200, but our expert Sean Brodrick says the real opportunity could lie in a handful of stocks that may soar far beyond gold. He believes the biggest bull market is taking shape and thinks these five companies may have major upside. This weekend only, you can get all five names for just $19.

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

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

Coreweave, Rocket Lab, AST Spacemobile, Rigetti And Bigbear.Ai: Why These 5 Stocks Are On Investors' Radars Today

Major U.S. indexes closed higher on Monday, with the Dow Jones Industrial Average climbing 0.8% to 47,368.63.

The Smart Money Copper Trade

The Smart Money Copper Trade - Ad

Only one lines up grade, scale potential, and Quebec power like this. Insider alignment is real. Stepouts are opening new zones. With EVs and grid buildouts rising, this could be the timely copper idea you have been waiting for.

Scaramucci Says This One US Mistake Helped China Become a Manufacturing Superpower

Anthony Scaramucci recently highlighted what he considers a significant error by the US that enabled China to ascend as a manufacturing superpower.

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.

Retire Comfortably with These New Monthly Income ETFs?

Retire Comfortably with These New Monthly Income ETFs? - Ad

Retirement should be freedom, not stress. Yet outdated advice and tiny returns leave many trapped. Kelly G. broke free with a revolutionary income strategy once reserved for the wealthy - hitting her "Freedom Number" faster than she dreamed. You might already have enough too.

Donald Trump Nullifies 92% Of Joe Biden's Autopen-Signed Documents: 'Cancelling All Executive Orders And Anything Else'

Trump moved to invalidate what he claims are most of Biden's autopen-signed actions, sparking political backlash and renewed debate over the legality and precedent of using mechanical signatures for presidential documents.

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.

Copper, Silver, Gold, Tungsten - This Nevada Play Offers Multiple Shots on Goal

Copper, Silver, Gold, Tungsten - This Nevada Play Offers Multiple Shots on Goal - Ad

Most early-stage resource opportunities rely on one metal. This one doesn't. The Walker Lane belt hosts copper, silver, gold, and tungsten - and recent results across the district confirm all four. This startup has stepped in with multi-metal exposure, giving investors several potential ways to capture upside.

What's Going On With Papa John's (PZZA) Stock Today? (UPDATED)

Shares of Papa John's International, Inc. (NASDAQ: PZZA) moved higher on Monday. Here's what you need to know.

Joan Branson, wife of British billionaire Richard Branson, dies at 80

Joan Branson, the wife of British billionaire Richard Branson, has died at age 80.

Weiss Gold Veteran Makes Shocking New Call

Weiss Gold Veteran Makes Shocking New Call - Ad

Weiss expert Sean Brodrick went out on a limb last year and declared a historic event would send the yellow metal to $3,150. People laughed at him at the time, but he was off by just two days. Now, Sean has a shocking new prediction for gold ... and reveals a little-known way to get ahead of this bull market.

Movie Review: Time has outrun this 'Running Man'

It’s always interesting when time overtakes the dystopias of the past. In 1982 novel “The Running Man,” the United States has fallen into a totalitarian state, divided between haves and have-nots, where all movements can be surveilled and realistic video propaganda is easily generated. King’s book was set in the year 2025.

Watchdog group Public Citizen demands OpenAI withdraw AI video app Sora over deepfake dangers

The tech industry is moving fast and breaking things again — and this time it is humanity’s shared reality and control of our likeness before and after death — thanks to artificial intelligence image-generation platforms .

The Smart Money Copper Trade

The Smart Money Copper Trade - 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.

Donald Trump Administration's Unprecedented Investment In Private Firms Raises Eyebrows

President Trump administration has invested over $10 billion of taxpayer funds in private companies deemed crucial to national security.

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 .

Cyber Weekend Sale! 85% Off Disruptors and Dominators!

Cyber Weekend Sale! 85% Off Disruptors and Dominators! - Ad

Nvidia's robot breakthrough, unveiled by CEO Jensen Huang at CES, could spark a $24T revolution. He said the "ChatGPT moment" for robotics is near. I believe the lives of 65M Americans could be impacted - this year. And one $7 stock could be the biggest winner.

Axon Enterprise: From TASER To AI-Powered Public Safety Platform

Axon Enterprise is executing an interesting transition from hardware vendor to high-margin SaaS and AI platform...

Silver Soars To Record Highs: It's Up 95% In 2025, The Best Year Since 1979

Silver prices surge over 5% as investors rush to secure metal amid tight supplies and global shortage concerns, driving up stocks and mining equities.

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.

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 Is Occidental Petroleum Stock Gaining Tuesday?

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

The $43B Big Pharma Story is Starting Over-With a New Player

The $43B Big Pharma Story is Starting Over-With a New Player - Ad

Auto Industry Faces 'EV Winter' Amid Policy Shifts and Supply Chain Woes

The US auto industry is currently facing a myriad of obstacles that are posing a threat to the expansion of EVs.

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 Next Biggest Bull Run In Over 50 Years

The Next Biggest Bull Run In Over 50 Years - Ad

Cathie Wood Bets Big On These Stocks As Bitcoin, Ethereum Crash —Dumps Instagram Rival

On Tuesday, Cathie Wood-led Ark Invest made significant trades, notably increasing its holdings in Bullish (NYSE:BLSH), Coinbase Glo

Trending Now