Temu v. Shein Tests US Antitrust Principles in a Crowded Market

In an antitrust battle between two Asian clothing manufacturers, Temu alleges that Shein entered the ultra-fast fashion business in the US in 2017, and that Temu appeared with a similar business model in September 2022. The newcomer discovered how supplies of identical ultra-low cost products were impaired by exclusive supply agreements with garment manufacturers in China, claims of copyright infringement, and possibly fines or penalties built into Shein’s contracts with its suppliers.

The effect, Temu alleges, was to prevent it from offering identical goods to US consumers at prices that were lower than Shein’s. The complaint states that traditional high-end ...