The Competition Commission of Pakistan (CCP) has asked the Pakistan Telecommunication Authority (PTA) to ban Chinese e-commerce platform Temu, it was learnt on Wednesday.
In a letter (dated August 22, 2025) seen by Business Recorder, the CCP said the e-commerce applications, namely Temu and Shein, are operational in Pakistan “without regulatory approval and are accessible nationwide for the purchase of online products”.
“The Pakistan Retail Business Council (PRBC) has requested the Government of Pakistan to impose a ban on Temu, citing potential adverse impacts on local businesses and consumers,” the letter read.
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The CCP further said it lacks the authority under the Competition Act, 2010, to impose bans or restrict access to applications available on platforms such as the Google Play Store.
“The Pakistan Telecommunication Authority is the competent authority to regulate and restrict access to such applications under applicable laws, rules, and regulations,” it said, forwarding the matter to the PTA for “further necessary action, if deemed appropriate, in accordance with relevant legal provisions”.
Temu positions itself as a gamified shopping app, where users feel like they can afford luxury-style variety for cheap.
They use gamification features (spin-the-wheel, coins, invite bonuses) to keep engagement high. Backed by PDD Holdings (parent company of Pinduoduo in China), Temu reportedly absorbs heavy losses to gain market share, selling items below cost, thanks to subsidies from parent capital and supplier-side efficiencies.
In Pakistan, Temu’s prices suddenly surged following the announcement of a 5% Digital Presence Tax imposed on foreign e-commerce platforms plus an 18% General Sales Tax.
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However, now that the 5% levy has been removed, prices may start returning to more moderate levels—but full clarity and stabilization depend on how Temu adjusts its pricing strategy moving forward.
Temu in hot water
Temu is under scrutiny in many countries amid concerns its cheap prices will undermine local businesses.
For instance, Indonesia has blocked Temu for violating local trade regulations. In Thailand, Temu faced regulatory investigations to determine whether it complied with local law and taxation obligations.
The European Commission has opened a probe into Temu, citing inadequate prevention of illegal or unsafe products, misleading recommendation algorithms, addictive design features, and weak risk assessments
