On July 17, foreign media reported that Temu, a subsidiary of China’s cross-border e-commerce platform Pinduoduo, filed a lawsuit in the Boston federal court last Friday, accusing fast fashion competitor Shein of violating the US antitrust law.
Temu claimed that Shein used its dominant market position to force garment manufacturers to sign exclusive agreements with it to prevent them from cooperating with Temu.
The indictment pointed out: “As an ultra-fast fashion retailer with the largest market share, Shein clearly knows that manufacturers need to rely on their sales volume and American market channels, so they can implement their wishes by forcing manufacturers not to cooperate with Temu.” Temu also accused Shein of “undermining the expansion of the ultra-fast fashion market in the United States”.
A spokesman for Shein said on Monday that Temu’s lawsuit was “groundless” and that they would actively respond.
The two companies have been involved in another legal dispute in Chicago, USA. In that lawsuit, Shein accused Temu of smearing Shein together with some social media online celebrity. Temu has filed a motion to dismiss the lawsuit, but the court has not yet made a decision.
This case can be called the “enter the dragon” of China’s e-commerce platform.
Post time: Jul-19-2023