Temu Accuses Fast Fashion Leader Shein of Bullying Suppliers

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PDD owned Temu accuses Shein of engaging in at least four strategies to stifle competition, including levying fines and penalties on suppliers that work with Temu. Photo: Bloomberg

(Bloomberg) — Chinese-owned online retailer Temu sued rival Shein in the U.S., alleging it violated antitrust laws by using threats and intimidation to block clothing manufacturers from working with the fast-rising upstart.

Shein and Temu, owned by PDD Holdings Inc., are two of the rising powers in online retail, a growing threat to the likes of H&M and Zara. The lawsuit offers a rare glimpse into the business models of the two secretive companies — and their fierce competitive practices.