AZE.US
Azerbaijan’s competition regulator has opened a case against PDD Holdings, the parent company of online marketplace Temu, over concerns that its pricing practices may restrict competition.
The State Service for Antimonopoly Supervision and Consumer Market Control said its preliminary review had identified possible violations of several provisions of Azerbaijan’s Competition Code.
The company is suspected of abusing a dominant market position through pricing policies that may make it difficult for rival platforms and local retailers to compete.
The case is still under review, and no final decision has been announced. The opening of proceedings does not mean that the alleged violations have been proven.
Could Temu Prices Rise?
Economist Rashad Hasanov said any impact on Azerbaijani consumers would depend on the regulator’s final findings.
Should Temu be required to revise its discount and pricing policies, some products sold through the platform could become more expensive for buyers in Azerbaijan.
Such a decision could improve conditions for domestic retailers and competing online marketplaces. However, it could also reduce access to low-cost products for Temu’s large customer base in the country.
For now, no restrictions have been imposed on the platform, and Temu continues to operate in Azerbaijan.
Regulators Scrutinize Digital Marketplaces
Economist Kenan Gozalov noted that Temu has faced regulatory scrutiny in other markets, including the United States, European countries and South Korea.
Those investigations have covered a range of issues, from product safety and counterfeit goods to compliance with consumer protection and digital commerce rules.
The Azerbaijani case, however, is focused primarily on competition and whether Temu’s pricing strategy unfairly disadvantages other market participants.
The regulator said its investigation remains ongoing.
AZE.US