Temu, Shein Ordered to Provide Info on EU Tech Rules Compliance by July 12

Temu, Shein Ordered to Provide Info on EU Tech Rules Compliance by July 12
TT

Temu, Shein Ordered to Provide Info on EU Tech Rules Compliance by July 12

Temu, Shein Ordered to Provide Info on EU Tech Rules Compliance by July 12

Chinese fast-fashion e-commerce retailer Temu and China-founded peer Shein were ordered by EU tech regulators to provide details on how they comply with EU online content rules by July 12 following complaints by consumer bodies.

Both companies are subject to tougher requirements under the Digital Services Act such as doing more to tackle illegal and harmful content on their platforms after they were designated as Very Large Online Platforms due to their large number of users.

The European Commission said it has sent requests for information to the companies, asking how they allow users to notify them of illegal products and manage their online interfaces to prevent users from being deceived or manipulated via so called dark patterns.

It also wanted more details on how the companies protect minors, the transparency of their recommendation systems, the traceability of traders, and compliance by design, Reuters reported.

"This enforcement action is also based on a complaint submitted to the Commission by consumer organisations. Both Temu and Shein must provide the requested information by 12 July, 2024," it said in a statement.

Temu said it was cooperating with the Commission.

"We'd also like to reiterate that we are fully committed to complying with all applicable laws and regulations in the markets where we operate," a spokesperson said in an email.

Shein did not have any immediate comment.

DSA violations can result in fines of as much as 6% of a company's global turnover.



South Korea's SK Hynix to Invest $75 Bln by 2028 in AI, Chips

The logo of SK Hynix is seen at its headquarters in Seongnam, South Korea, April 25, 2016. (Reuters)
The logo of SK Hynix is seen at its headquarters in Seongnam, South Korea, April 25, 2016. (Reuters)
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South Korea's SK Hynix to Invest $75 Bln by 2028 in AI, Chips

The logo of SK Hynix is seen at its headquarters in Seongnam, South Korea, April 25, 2016. (Reuters)
The logo of SK Hynix is seen at its headquarters in Seongnam, South Korea, April 25, 2016. (Reuters)

South Korea's SK Hynix, the world no.2 memory chip maker, will invest 103 trillion won ($74.6 billion) through 2028 to strengthen its chips business, focusing on AI, its parent SK Group said on Sunday.

SK Group also said it plans to secure 80 trillion won by 2026 to invest in artificial intelligence and semiconductors as well as fund shareholder returns, while streamlining its more than 175 subsidiaries.

The sprawling conglomerate outlined the plans following a two-day strategy meeting, aiming to revive the group after SK Hynix, its main money maker, and the group's electric vehicle battery arm suffered heavy losses.

SK Group said it sought to improve its competitiveness by focusing on its AI value chain, including high bandwidth memory (HBM) chips, AI data centres and AI services such as personalised AI assistants.

At a time of transition, a "preemptive and fundamental change is necessary," SK Group Chairman Chey Tae-won was quoted as saying in the statement

During the meeting, the executives also agreed to take gradual steps to adjust the number of subsidiaries in the group to a "manageable range", without specifying the scale of the reduction.

Local media had said SK Innovation, which owns the county's largest oil refiner and battery maker SK On, was expected to pursue a merger with profitable gas affiliate SK E&S.

The group expects its profit before tax to reach around 22 trillion won this year, turning around from a loss last year, with the goal of hitting 40 trillion won in profit before tax by 2026.

South Korea, home to the world's top memory chip makers Samsung Electronics and SK Hynix, has fallen behind some rivals in areas such as chip design and contract chip manufacturing.

Earlier this year, the government announced a 26 trillion won ($19 billion) support package for its chip businesses, citing a need to keep up in areas like chip design and contract manufacturing amid 'all-out warfare' in the global semiconductor market.