The Chinese fast fashion online platform Shein and the online marketplace Temu have fought a legal battle at the start of court proceedings in Great Britain. Shein accused the rival of copyright infringement “on an industrial scale”; Temu responded that Shein was using the copyright allegations to stifle competition.
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The London High Court trial, which began on Monday, is expected to provide a rare insight into Shein and Temu’s supply chains, as well as the way the ultra-fast fashion purveyors compete for suppliers and overlapping production networks, observers said.
According to the Bloomberg news agency, the outcome of this legal dispute will have an impact on the respective supplier relationships and probably also on European retailers. According to estimates, Temu and Shein alone cost German retailers several billion euros. The HDE trade association has already brought an import ban into play in a fire letter to the Federal Chancellor.
Lawsuit and counterclaim
Shein sued Temu in 2023, and Temu filed a countersuit the following year. Both companies are demanding compensation from the other for losses allegedly caused by the other party. Shein accuses Temu of using thousands of photos from the Shein website to promote copies of Shein’s own-brand clothing on its own website. “This was an attempt to get ahead of an existing market participant and Temu attempted to gain an unfair advantage,” Shein’s lawyer Benet Brandreth said, according to Reuters news agency.
Temu’s lawyers denied the allegations. The dealers responsible for using the images had the necessary consents, they said. The case has nothing to do with copyright protection of photographs, but “is solely about the plaintiff’s attempt to suppress legitimate competition,” explained Temu’s lawyer Charlotte May.
In its countersuit, Temu is again seeking damages because the company had to remove thousands of product listings following an injunction obtained by Shein. Temu also claims that Shein violated competition law by binding fast fashion suppliers to exclusive contracts. According to Reuters, this part of the case will be heard in court next year.
Rapid expansion course with hurdles
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Shein and Temu have expanded rapidly internationally in recent years with fast fashion, sporting goods and gadgets. But the removal of tariff exemptions in the US last year for small, low-value shipments could weigh on the future growth of e-commerce platforms. Especially since in February the European Union (EU) also decided to end the current customs exemption for small shipments worth less than 150 euros. When the regulation comes into force in July 2026, ordering from online giants such as Temu or Shein in the EU will become more expensive.
In addition, the EU Commission opened a formal investigation against Shein. The provider may have breached its obligations. The Irish data protection authority is currently investigating whether the fast fashion giant Shein is transferring European user data to China illegally and without sufficient protection.
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