HONG KONG (Reuters) – Chinese e-tailer Temu said on Wednesday it had been the target of rival Shein’s “illegal exclusivity tactics” since Temu launched in the U.S. in 2022, exacerbating the Discord between the parties. The lawsuit comes days after fast-fashion rivals filed suit.
Temu, a unit of PDD Holdings, filed a lawsuit on Friday accusing Shein of violating US antitrust law. In a statement sent to Reuters on Wednesday, the company said it had to take legal steps to defend its and its merchants’ rights because of Shein’s “escalating attacks.”
It marks the company’s latest development amid an increasingly competitive global fast fashion market, with Chinese players vying for dominance.
Temu filed a lawsuit on Friday, claiming that Shein entered the U.S. market on 66 with a valuation of 66 billion dollars, Abusing its market power to try to force manufacturers to avoid Temu.
Temu’s complaint alleges that Shein “forced manufacturers to sign a loyalty oath certifying that they would not do business with Temu.”
An A Shein spokesman on Wednesday reiterated the initial statement about the lawsuit. “We believe this lawsuit has no merit and we will vigorously defend ourselves,” the spokesperson said.