Chinese e-commerce platform Temu to be banned in Pakistan

In letter dated August 22, CCP states that it cannot directly shut down Temu as it is not registered in Pakistan
An undated image of Temu. — Google Play
An undated image of Temu. — Google Play

Only months following its expansion in the country, the newly developed Chinese e-commerce platform Temu is on the verge of facing a ban in Pakistan, as the Competition Commission of Pakistan (CCP) has urged the Pakistan Telecommunication Authority (PTA) to do so.

Behind the reason that seems to have propelled Temu's suspension, the CCP cited the platform's disruptive practices that are adversely affecting the market and putting Pakistani shoppers at risk

Is Temu facing a ban in Pakistan?

In a letter dated August 22, the CCP stated that it cannot directly shut down Temu as the company is not registered in Pakistan. Instead, it has referred the issue to the PTA, the telecom authority capable of restricting or blocking digital platforms in the country.

The warning against Temu comes on the heels of growing complaints from trade groups such as the Pakistan Retail Business Council and the Chainstore Association of Pakistan. These associations argued that Temu uses predatory pricing and misleading promotions that are likely to attract customers now but will eventually harm local businesses.

“Retailers can’t compete with a company selling goods below cost just to gain market share. It’s not innovation; it’s suffocation,” an association member said.

The backlash directed towards Temu goes beyond pricing issues. Consumer rights groups also outlined that Temu runs without essential safeguards, such as cash-on-delivery options and local return centres, one of the major aspects of online shopping in a market where trust is scarce.

They argued that online retailing platforms like Temu operate outside local regulations, which gives them a winning edge over local sellers.

It's worth noting that Pakistan is not the only nation to be blocking Temu owing to its rapid growth. Countries like Indonesia and Vietnam have also acted against the platform.