CCP pushes for ban on Chinese e-commerce giant Temu over unregulated operations

By Staff Reporter

ISLAMABAD: Pakistan’s antitrust authority has called on the country’s telecommunications regulator to ban the Chinese e-commerce platform Temu, warning that its unregulated operations could harm local businesses.

In a letter dated Aug. 22, 2025, the Competition Commission of Pakistan (CCP) told the Pakistan Telecommunication Authority (PTA) that Temu and Shein, another Chinese e-commerce platform, are operating in Pakistan without regulatory approval and are widely accessible for online purchases.

The letter followed a request from the Pakistan Retail Business Council, which pressed the government to block Temu, highlighting potential risks to local retailers and consumers.

The CCP said it lacks the power under the Competition Act, 2010, to ban or restrict access to applications on platforms like the Google Play Store. It identified the PTA as the authority responsible for regulating such platforms under existing laws and referred the matter for further action as deemed necessary.

Temu, supported by PDD Holdings, the parent company of China’s Pinduoduo, promotes a gamified shopping experience with features like spin-the-wheel, coins, and invite bonuses to drive user engagement. The platform reportedly incurs losses to build market share, leveraging parent company subsidies and supplier efficiencies to offer products at below-cost prices.

In Pakistan, Temu’s prices spiked after the government imposed a 5 percent Digital Presence Tax on foreign e-commerce platforms, alongside an 18 percent General Sales Tax. With the recent removal of the 5 percent tax, prices may ease, though Temu’s future pricing strategy remains unclear.

The platform faces scrutiny in multiple countries. Indonesia has blocked Temu for breaching trade regulations, while Thailand is investigating its compliance with local laws and tax requirements. The European Commission is probing Temu over concerns about illegal or unsafe products, misleading algorithms, addictive design features, and inadequate risk assessments.