The Competition Commission of Pakistan (CCP) has formally referred the case of Chinese e-commerce giant Temu to the Pakistan Telecommunication Authority (PTA), recommending the telecom regulator decide whether to restrict or ban the platform over allegations of predatory pricing, manipulative practices, and consumer risks.
Read More: Temu’s price hike exposes the myth of “too cheap to be true” shopping
Domestic retailers, including the Pakistan Retail Business Council (PRBC) and the Chain Store Association of Pakistan (CAP), have accused Temu of destabilizing the retail ecosystem by offering unsustainably steep discounts and gamified advertising tactics. They argue that the platform’s practices amount to predatory pricing, leaving local retailers—who must comply with tax, safety, and consumer protection laws—at a structural disadvantage.
CCP Passes the Burden to PTA:
In its communication, the CCP admitted it lacks the authority to directly ban foreign digital platforms. Instead, it has advised the PTA—which regulates online applications and telecom-linked services—to investigate the allegations and impose restrictions if necessary. The move shifts enforcement responsibility at a time when complaints against Temu are mounting.
“Allowing Temu to operate unchecked risks hollowing out Pakistan’s digital economy while offering little local value in return,” a senior retail sector analyst told this publication.
Temu’s Rapid Entry Raises Red Flags:
Temu entered Pakistan earlier this year, quickly capturing market share with ultra-cheap products and aggressive online promotions. However, critics allege the platform:
- Relies on misleading product reviews
- Avoids cash-on-delivery options popular in Pakistan
- Lacks local return facilities, exposing consumers to losses
Small businesses warn the pricing model is unsustainable and could wipe out large portions of Pakistan’s retail base. Consumer groups also highlight the risks to buyers who are left without protections available on regulated domestic platforms.
Regional & Global Scrutiny:
Temu’s expansion has drawn pushback globally. Both Indonesia and Vietnam have already moved to restrict the platform, citing similar concerns of market distortion and weak consumer protection. Industry experts argue Pakistan should follow these precedents before Temu entrenches itself further.
Defining Case for Digital Regulation:
Officials note that the CCP’s referral to the PTA is not routine but signals a potentially defining case in Pakistan’s approach to foreign e-commerce. The PTA now faces three choices:
- Impose strict compliance obligations on Temu
- Restrict its operations
- Consider a complete ban
The decision will set a precedent for cross-border e-commerce regulation in Pakistan—balancing openness to foreign entrants against safeguarding local markets and consumer rights.
Call for Urgent Action:
Industry groups are urging swift intervention, warning that regulatory delays could allow Temu to entrench itself irreversibly. Some policymakers are also pressing for reforms to strengthen consumer protection laws and close loopholes that foreign platforms exploit.
For now, all eyes are on the PTA. Its ruling will not only determine Temu’s fate in Pakistan but will also test the country’s capacity to regulate disruptive foreign platforms.