Open letter to the EU:

Europe’s trade associations complain about Temu and Shein

For several months now, numerous trade representatives have been warning about the flood of offers from Chinese online stores.

(Bild: AP/Richard Drew)

In view of increasing competition from low-cost Asian online retailers such as Temu and Shein, the European e-commerce umbrella organization is calling for action from the EU.

In an open letter to decision-makers in Brussels published on Wednesday, Ecommerce Europe demands that the EU should advocate fair competitive conditions for all online retailers in the EU single market and ensure effective enforcement of EU law.

17 associations from across Europe
The letter was signed by 17 European associations, including the Austrian Retail Association. The letter complains, among other things, that the mostly Asian players are not subject to the same regulations as European players and are therefore not guaranteed fair competition. Furthermore, some of these financially strong platforms are pushing into Europe with "aggressive marketing practices".

According to the stakeholders, the European Union should monitor the activities of non-European online retailers more closely and impose the same severe sanctions in the event of infringements as it does for European companies. According to the letter, the associations are expressly not concerned with protectionist measures, but rather with creating a level and therefore fair playing field.

Questions regarding EU legislation
According to Rainer Will, Managing Director of the German Retail Association, the new market participants "raise many questions regarding compliance with EU legislation, particularly in the areas of consumer protection, product safety, counterfeiting, data protection, privacy, the environment and taxes". Non-compliance with these regulations could not only lead to unfair competition, but also to potentially dangerous products entering the EU market, he criticized in a press release.

For several months now, numerous trade representatives have been warning about the flood of products being offered by Chinese online stores and the potential consequences for companies and consumers in Europe. The EU Commission has therefore recently tightened its stance and issued stricter regulations for the two Chinese online giants Temu and Shein.