The European Commission has announced new measures aimed at addressing unfair competition from Chinese e-commerce giants Temu and Shein, as well as enhancing product safety across the EU. The Commission's latest report highlights the rising number of small parcels entering the EU—12 million per day in 2023, double the figure from the previous year—posing significant challenges for European retailers and consumer protection.
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A key proposal includes the abolition of the €150 duty-free threshold for imports, replacing it with a handling fee to better regulate the influx of goods. The Commission has also launched an investigation into Shein and is scrutinising Temu's compliance with EU consumer protection laws.
Svensk Handel: unfair competition threatens jobs and the green transition
Swedish Trade (Svensk Handel) has welcomed the EU's efforts to tackle unfair competition, citing the rapid rise in small package imports as a major threat to local businesses and sustainable economic development. In 2023 alone, 12 million such packages entered the EU daily, doubling from the previous year, with a significant portion originating from Chinese online retailers.
'Every day that unfair competition continues, Swedish companies and jobs are at risk, as is the green transition,' said Martin Kits, Head of Business Policy and Opinion Formation at Svensk Handel. 'We need swift and decisive action to prevent European retail from being undermined.'
The European Commission's latest report highlights that an increasing number of unsafe products are entering the EU market, prompting calls for the elimination of the duty-free regime and the introduction of a handling fee to better regulate imports. While Svensk Handel supports this move, Kits argues it is not enough: 'If we are to achieve fair competition, Temu and others must be held accountable for the products they sell in the EU before they reach consumers. That is not happening today.'
A recent report from the Swedish Chamber of Commerce found that compliance with EU regulations increases costs for European companies by 40%, while online giants circumvent these expenses. The Commission has also launched an investigation into Shein and Temu for alleged violations of EU consumer protection laws.
bevh: enforcement, not new laws, is key
The German E-Commerce and Distance Selling Trade Association (bevh) has also welcomed the Commission's actions but insists that better enforcement of existing rules is the most effective way forward.
'The EU is finally taking the issue seriously and demanding that member states clarify responsibilities, improve coordination, and strengthen digital networking to combat unfair practices from non-EU platforms,' said Alien Mulyk, Head of Public Affairs Europe & International at bevh. 'However, instead of introducing new laws, the focus should be on effectively enforcing the regulations already in place.'
bevh has raised concerns about the proposed handling fee for all e-commerce shipments from outside the EU, warning that it could penalise compliant retailers while failing to curb unfair competition. Mulyk stressed the importance of ensuring that all platforms are treated equally under the new customs code.
'The definition of the responsible importer needs to be clear so that all platforms bear equal responsibility for the goods they sell,' Mulyk added. 'Currently, only those registered in the Import One Stop Shop face additional obligations, creating an uneven regulatory environment.'
As the EU moves towards stricter oversight of cross-border e-commerce, industry leaders urge policymakers to refine their approach to ensure fairness, effective enforcement, and a non-discriminatory application of new regulations.
More information:
Svensk Handel
[email protected]
www.svenskhandel.se
The German E-Commerce and Distance Selling Trade Association (bevh)
[email protected]
www.bevh.org