Popular Chinese e-commerce platforms Shein and Temu are now competing not only in virtual marketplaces but also in courtrooms. Shein has filed a lawsuit against its competitor Temu, targeting it with various accusations. Shein claims that Temu exercises excessive control over its sellers and engages in illegal activities such as fraud, trade secret theft, intellectual property rights violations, and counterfeiting.
Shein’s Serious Allegations and Legal Struggle
Shein argues that Temu appears to be just a marketplace but in reality, it tightly controls the activities of its sellers. This control over which products can be listed and at what prices they can be sold results in pressure tactics. According to Shein, this infringes on the rights of other sellers and leads to unfair competition.
Furthermore, Shein criticizes Temu’s low price policy and accuses it of stealing internal pricing information from competitors. It is also alleged that Temu has damaged Shein’s brand value by using its trademark in Google advertisements.
In this legal battle, both parties have serious claims, and it is curious to see how the court process will conclude. This legal fight between the two giants of the Chinese e-commerce market could set an example for other e-commerce platforms and potentially reshape the rules of competition in the market.