Temu and Shein, popular low-cost Asian e-commerce platforms, are facing heightened regulatory scrutiny in Europe. EU authorities are cracking down on retailers evading customs checks, with proposals including a new tax on platform revenue and handling fees to curb competitive pricing.

European Trade Commissioner MarosSefcovic highlighted that 4 billion low-value parcels, triple 2022’s figure, are expected to enter the EU this year, many exempt from customs duties due to the €150 threshold. This has raised concerns about unchecked imports of counterfeit or dangerous goods. The EU is now considering scrapping this threshold, mirroring similar moves in the US.

Officials fear platforms’ rock-bottom prices undermine EU competitors, who face higher production costs due to strict regulations. Screening all parcels, however, remains a logistical challenge, with major hubs already processing millions daily. A handling levy on non-EU shipments is also being discussed.

Additionally, Temu faces allegations of misleading consumers through fake discounts, hidden conditions, and unclear contact details. Meanwhile, Amazon’s low-cost storefront, Haul, recently entered the US market, targeting budget-conscious shoppers.