The Competition Commission of Pakistan (CCP) just handed a regulatory hot potato to the Pakistan Telecommunication Authority (PTA): should the e-commerce darling Temu be banned in Pakistan?
On August 22, the CCP received a formal complaint from the Pakistan Retail Business Council (PRBC) and the Chain Store Association of Pakistan (CAP). They claimed the platform––along with fellow Chinese e-shop Shein––is operating in Pakistan without regulatory approval and using aggressive pricing and marketing tactics that threaten local retailers and endanger consumers. Their plea? Impose restrictions on Temu’s operations to level the playing field.
Alas, the CCP is a referee, not a rule-maker—it lacks the legal teeth to block apps like Temu. Hence, it officially forwarded the matter to PTA, which does have the mandate to regulate or restrict such platforms under Pakistani law.
So, here’s the ball in PTA’s court:
- Is Temu legally registered in Pakistan?
It seems not—raising questions around tax compliance, consumer protection, and recourse mechanisms. - Is its “gamified” pricing strategy fair competition or too good to be true?
Stakeholders argue the rock-bottom prices and flashy promotions may pressure local retailers into unsustainable positions. - What about consumer safeguards?
Critics warn that the platform lacks foundational protections—no cash-on-delivery, no returns, possibly even recycled reviews. That’s a trust deficit in a market where buyer protection is still fragile.
According to TechJuice, PTA has already begun internal reviews. Initial steps include exploring whether Temu’s practices may involve criminal elements—fraud, deceptive operation—or can otherwise be regulated under existing frameworks. Shein might also face scrutiny.
This is part of a broader global trend: countries like Indonesia and Vietnam have already cracked down on Temu, and the European Commission has launched investigations into its algorithmic behavior and product safety compliance.
Bottom line: Temu’s future in Pakistan now hangs in the balance. The CCP bubbled over—it couldn’t take direct action. Now PTA must decide: impose a ban, fine-tune regulatory enforcement, or let the e-commerce game continue.
For local retailers, this is do-or-die time. For consumers, it’s a wait-and-see. And for PTA? It’s time to put the telecom maestro hat on and orchestrate the next move.
