AZE.US
A possible fine against online marketplace Temu could eventually lead to higher delivery costs for shoppers in Azerbaijan, economist Natig Jafarli has warned.
According to AZE.US, Jafarli was commenting on an investigation launched by Azerbaijan’s State Service for Antimonopoly Supervision and Consumer Market Control into PDD Holdings, the company behind Temu.
The case reportedly concerns possible violations of competition rules, including pricing practices that may restrict competition.
Jafarli argued, however, that applying the concept of dumping to Temu may be questionable.
Dumping typically occurs when a producer deliberately sells goods at unusually low prices in order to push weaker competitors out of the market. Once it secures a dominant position, the company can raise prices and recover its earlier losses.
Temu, Jafarli noted, is not itself a manufacturer.
The China-based e-commerce platform works directly with producers and offers millions of products, including clothing, electronics, household goods, cosmetics, toys and tools.
According to the economist, prices are largely determined by manufacturers, while Temu mainly handles orders and delivery. That limits the platform’s ability to engage in traditional dumping, he said.
Jafarli stressed that Temu should still be subject to regulatory oversight, particularly when it comes to consumer protection.
Complaints involving poor-quality goods, damaged products or items that do not match advertised images should be investigated, he said.
At the same time, he questioned why the authorities had focused specifically on pricing and alleged dumping.
“Who complained, and which competitor was harmed?” Jafarli asked.
He warned that any major fine imposed on Temu could ultimately be passed on to consumers through higher delivery fees or less favorable shopping conditions.
“The company will not pay the fine out of its own pocket. Citizens will pay it,” he said cebheinfo.az. “The final cost of taxes, duties and penalties is always transferred to the consumer.”
Jafarli added that increasing the financial burden on businesses often leads directly to higher prices for ordinary buyers.
Azerbaijan’s antimonopoly authority earlier said it had identified possible signs of violations of several provisions of the country’s Competition Code in Temu’s operations.
AZE.US