The Federal Cartel Office (Bundeskartellamt) has opened proceedings against Whaleco Technology Limited, the Dublin-based operator of the fast-growing online marketplace Temu, to investigate whether the platform has imposed unlawful pricing restrictions on merchants selling through its German site, temu.com.
In announcing the investigation, Andreas Mundt, President of the Bundeskartellamt, highlighted the potential competitive risks associated with Temu’s conduct:
“More than 100 million users visit Temu’s European marketplaces every month. The trading platform has been open to German retailers for about a year. We are investigating suspicions that Temu may be imposing unlawful pricing requirements on retailers on the German marketplace. Such requirements could constitute significant restrictions of competition and ultimately lead to price increases on other sales channels.”
Focus on Platform Terms and Pricing Mechanisms
The inquiry will assess the terms and conditions governing merchant relationships on Temu’s German platform, as well as any related practices that could affect dealers’ ability to set independent prices. According to the authority, these could include Temu’s potential determination of final retail prices, which—if substantiated—may constitute a vertical restraint in violation of German and EU competition law.
The German Retail Association (HDE) has reportedly filed a formal complaint against Temu, prompting the Bundeskartellamt’s review. The case will likely test how traditional antitrust principles apply to algorithmically governed, platform-mediated pricing structures in online marketplaces.
A Major Platform Under Growing Scrutiny
Temu, owned by China’s PDD Holdings, has rapidly expanded across Europe since 2023 and now serves over 115 million monthly active users in the European Union, including 19.3 million in Germany. Although Temu does not sell goods directly, it acts as an intermediary connecting merchants with consumers, offering an extensive range of low-priced products through both its website and mobile app.
In May 2024, Temu was designated as a Very Large Online Platform (VLOP) under the EU’s Digital Services Act (DSA), subjecting it to additional transparency, accountability, and reporting obligations. The Bundeskartellamt’s latest probe adds to the company’s growing regulatory exposure in Europe, combining competition and digital regulation oversight.
Strategic and Regulatory Implications
This investigation reflects the Bundeskartellamt’s increasing focus on platform competition and algorithmic market behavior, aligning with wider European enforcement trends under both the Digital Markets Act (DMA) and national competition frameworks.
If the authority finds that Temu has restricted merchants’ pricing autonomy, the case could have broader implications for online marketplace governance—particularly for platforms that rely on algorithmic price optimization, merchant ranking systems, and discount enforcement mechanisms.
The Bundeskartellamt’s action also underscores a tightening regulatory environment for digital platforms operating at scale in Europe, where competition, consumer protection, and data governance issues increasingly intersect.
