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Aftab Maken
Pakistan’s competition watchdog has urged the telecom regulator to block Temu, citing unfair trade practices and threats to local businesses.
The Competition Commission of Pakistan (CCP) has formally requested the Pakistan Telecommunication Authority (PTA) to impose a ban on the Chinese e-commerce platform Temu, arguing that its unchecked operations are damaging domestic retail and exposing consumers to risks. In a letter dated August 22, 2025, the CCP noted that it lacked the authority to directly ban the platform, as Temu is not registered in Pakistan, and therefore asked the PTA to take regulatory action.
The move follows growing complaints from the Pakistan Retail Business Council and the Chainstore Association of Pakistan, which accuse Temu of relying on predatory pricing and manipulative marketing tactics that local sellers cannot match. According to industry groups, the company’s model of offering steep discounts and below-market pricing distorts competition and squeezes smaller businesses that form the backbone of Pakistan’s retail economy.
Temu, which entered the Pakistani market only a few months ago, has rapidly built visibility through aggressive online advertising, including gamified promotions and flash sales. Critics argue that these strategies cross ethical boundaries, luring customers into unsustainable buying patterns while leaving them vulnerable. Independent sellers and consumer rights advocates have also raised concerns over fake or recycled product reviews, lack of a cash-on-delivery payment option, and the absence of local return facilities, which effectively strip Pakistani buyers of basic protections.
Consumer protection experts warn that this creates a two-tier system: domestic e-commerce platforms are bound by local regulations, while Temu operates outside those frameworks, avoiding accountability. This uneven playing field, they argue, undermines trust in online commerce and accelerates losses for Pakistani retailers who already face tight margins in a struggling economy.
The CCP, while acknowledging these risks, clarified that only the PTA has the jurisdiction to restrict or ban foreign digital platforms under existing telecom and IT laws. Its referral of the matter signals growing institutional pressure to rein in Temu’s influence before its practices inflict long-term harm on the domestic market.
Temu’s rise in Pakistan mirrors similar trends across Southeast Asia, where regulators have also acted against the company. Indonesia and Vietnam have introduced measures to curb Temu’s operations, citing threats to fair competition and consumer welfare. In both cases, authorities framed the issue as part of broader efforts to level the playing field for local e-commerce while ensuring digital platforms meet basic consumer protection standards.
Pakistan now faces a similar policy dilemma: balancing consumer demand for low-cost goods with the need to safeguard local commerce and ensure fair regulation. Analysts note that while Temu’s pricing strategies appeal to cost-conscious buyers, the long-term effect of allowing an unregulated foreign platform to dominate could weaken the domestic retail sector and deepen dependence on imports.
The controversy also comes at a time when Pakistan is seeking to strengthen its digital economy through new e-commerce frameworks and consumer protection laws. Observers suggest that the case against Temu could become a defining moment in shaping how foreign e-commerce players are allowed to operate in the country.
For now, the decision rests with the PTA, which has yet to announce whether it will proceed with the ban. Whatever the outcome, the episode underscores the growing challenges regulators face in managing global digital platforms whose disruptive models test the limits of existing laws.
As consumer habits shift online and global players like Temu expand rapidly, Pakistan’s regulatory response will set an important precedent for protecting local businesses while maintaining competitive and fair digital markets.
