TEMU, a unit of Shanghai's PDD Holdings, has launched a lawsuit in the US against fast-fashion rival, Singapore=based Shein, accusing it of illegal and anticompetitive practices as part of a 'desperate plan' to sabotage its business, reports Hong Kong's South China Morning Post.
Boston-based WhaleCo, which operates as Temu in the US, said Shein's unlawful actions included 'mafia-style intimidation' and 'false imprisonment' of vendors, as well as 'abuse of the copyright system' through sham copyright claims.
Temu previously sued Singapore-based Shein in July with similar allegations of antitrust violations, such as the coercion of vendors and manufacturers into exclusive-dealing agreements. Temu filed to drop those charges in October.
'Temu has discovered that Shein's anticompetitive behaviour has not only persisted but intensified,' the latest lawsuit states, adding that 'Shein's persistent and increasingly aggressive use of anticompetitive conduct, coercion, and threatening behaviour necessitates this lawsuit.'
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Boston-based WhaleCo, which operates as Temu in the US, said Shein's unlawful actions included 'mafia-style intimidation' and 'false imprisonment' of vendors, as well as 'abuse of the copyright system' through sham copyright claims.
Temu previously sued Singapore-based Shein in July with similar allegations of antitrust violations, such as the coercion of vendors and manufacturers into exclusive-dealing agreements. Temu filed to drop those charges in October.
'Temu has discovered that Shein's anticompetitive behaviour has not only persisted but intensified,' the latest lawsuit states, adding that 'Shein's persistent and increasingly aggressive use of anticompetitive conduct, coercion, and threatening behaviour necessitates this lawsuit.'
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