On August 28, 2025, Pakistan’s online shopping landscape faces potential disruption as the Competition Commission of Pakistan (CCP) urged the Pakistan Telecommunication Authority (PTA) to ban the Chinese e-commerce app Temu for its predatory practices and harm to local businesses, per Daily Times and Business Recorder. Prompted by complaints from the Pakistan Retail Business Council (PRBC) and Chain Store Association of Pakistan (CAP), the CCP cites Temu’s unregulated operations, including predatory pricing, manipulative marketing, and lack of consumer protections like cash-on-delivery, per TechJuice. Since entering Pakistan in early 2025, Temu has gained traction but is accused of selling substandard or fake products and lacking local return facilities, per Express Tribune.
The CCP’s August 22, 2025, notice accuses Temu of bypassing regulatory approval and exploiting the De Minimis exemption to avoid taxes and duties, undercutting local retailers, per. This creates an uneven playing field, as domestic sellers face tax compliance, per Profit by Pakistan Today. The CCP lacks authority to ban apps on platforms like Google Play, so the PTA is reviewing legal and technical grounds for a ban, potentially escalating criminal findings to other agencies, per ProPakistani.
Shein, another Chinese platform, faces similar scrutiny, though with fewer complaints, per Pakistan Observer. Both apps use aggressive advertising and gamified promotions, but Temu’s issues, including no local returns, are more pronounced, per. The PRBC and CAP argue these platforms cause job losses and reduce tax revenue, per.
Globally, Temu faces bans in Indonesia for trade violations, tax probes in Thailand, and EU investigations for illegal products and addictive design, per Business Recorder and CSIS. In Pakistan, Temu’s prices rose after a 5% Digital Presence Tax in the 2025 budget but may stabilize post-removal, per ProPakistani. A ban could protect local retailers but limit consumer options, boosting platforms like Daraz, per PhoneWorld.
No immediate restrictions are in place, but the PTA’s decision is expected soon after consultations, per. Shoppers should use verified platforms and report issues to the CCP, per. The review may set precedents for foreign apps, balancing innovation and competition, per.
