Temu, owned by PDD Holdings, filed a lawsuit accusing Shein of violating U.S. antitrust legal guidelines on Friday. In a press release despatched to Reuters on Wednesday, the corporate mentioned it needed to take authorized measures to defend its and its retailers’ rights as a result of “escalating attacks” from Shein.
This marks the newest improvement within the more and more aggressive international fast-fashion market the place the Chinese corporations are vying for dominance.
Temu’s lawsuit on Friday alleges that Shein, which entered the U.S. market in 2017 and has a $66 billion valuation, has abused its market energy in attempting to coerce producers to shun Temu.
Temu’s criticism alleged Shein “forces manufacturers to sign loyalty oaths certifying that they will not do business with Temu.”
A Shein spokesperson on Wednesday repeated its preliminary assertion concerning the lawsuit. “We believe this lawsuit is without merit and we will vigorously defend ourselves,” the spokesperson mentioned.
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Source: economictimes.indiatimes.com