Shein and Temu have declared war on each other
According to Shein, Temu systematically used thousands of photos of products without authorization to promote similar or identical products on its platform, writes Reuters. The company claims that in this way Temu tried to take advantage of brand recognition and strengthen its own position at the expense of other people’s content.
Shein’s lawyers said in court that such practices go beyond fair competition and actually violate market rules. Temu representatives, in turn, reject the accusations and filed a counterclaim. The company claims that Shein’s actions led to the removal of thousands of product lines, which, according to its version, caused significant financial damage to the business.
In addition, Temu accuses the competitor of possible violation of antitrust laws, pointing to Shein’s exclusive agreements with suppliers, which could limit competition in the market.
In parallel, the companies are litigating in other jurisdictions, including the US, amid increasing regulatory pressure on global online platforms. The focus is on user data processing, vendor relationships and supply chain transparency.
Both companies have grown rapidly through an ultra-low-cost online retail model for clothing and everyday goods. However, their future expansion could be complicated by changes in customs regulations, including the elimination of exemptions for low-cost parcels in the U.S. and similar measures being discussed in Europe.
