Temu to Face EU Probe Over Handling of Illegal Product Sales (1)

The European Union is set to launch an investigation into Temu over concerns it is failing to curb the sale of illegal products online, in a probe that could lead to hefty fines for the e-commerce service.

The European Commission will open formal proceedings against the platform — run by Chinese-owned PDD Holdings Inc. — to probe whether it is in breach of rules against illicit online activities, according to people familiar with the matter, who asked not to be identified discussing confidential conversations.

The investigation could be announced imminently, but the timing could also slip, as the Brussels-based executive ...