Temu files US antitrust law violation lawsuit against rival Shein

Chinese e-retailer, Temu, has filed a lawsuit accusing its rival, Shein, of violating U.S. antitrust laws on Friday.

Temu has been the target of Shein’s unlawful exclusionary tactics since the former’s launch in 2022, abusing its market power to coerce manufacturers to shun it by signing loyalty oaths certifying they will not do business with it, Temu said in a statement.

Temu had to take legal measures to defend its and its merchants’ rights in the face of escalating attacks from Shein, which was launched in the US market in 2017, Temu added.

“We believe this lawsuit is without merit and we will vigorously defend ourselves,” said a Shein spokesperson.

Temu’s comments are ramping up a feud between the two Chinese rivals, especially following the filed lawsuit.