Africa’s Two Largest Economies Close In on Temu In Twin Regulatory Assault

African regulators are tightening the screws on Chinese e-commerce giant Temu, with Nigeria launching a data protection probe and South Africa weeks away from concluding a consumer rights investigation in a dual assault that signals a more assertive stance toward global digital platforms operating on the continent.

Nigeria’s Data Protection Commission (NDPC) on Monday ordered an immediate investigation into Temu’s data-processing activities, citing potential violations of the country’s 2023 Data Protection Act. The probe targets concerns including online surveillance, cross-border data transfers, and whether the platform collects more information than necessary. These allegations mirror regulatory actions in Europe and Asia.

Preliminary findings indicate Temu processes personal data of approximately 12.7 million Nigerian users, part of its 70 million daily active users globally. NDPC National Commissioner Vincent Olatunji warned that local processors acting on behalf of foreign controllers could face liability if they fail to verify compliance. Temu has pledged cooperation, stating “protecting user privacy and data security is a top priority”.

Some 4,000 kilometres south, South Africa’s National Consumer Commission (NCC) is finalising its own investigation into Temu and rival Shein, with findings expected by February 28. Launched in November 2025, the probe examines potential violations of the Consumer Protection Act, including misleading marketing, product quality, labelling, and undisclosed fees.

If violations are found, the platforms face administrative penalties up to ZAR 1 M (USD 55 K) or 10% of their annual South African turnover; a potentially significant sum given the platforms’ estimated transaction volumes. Both companies have committed to cooperating with investigators.

The consumer probe follows 2024 tax amendments that closed loopholes allowing international e-commerce companies to avoid value-added tax on small packages, eroding the pricing advantage platforms like Temu and Shein had cultivated.

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The African actions come amid widening international scrutiny. In 2025, South Korea fined Temu approximately USD 978 K over undisclosed cross-border data transfers, while the U.S. Federal Trade Commission imposed a USD 2 M civil penalty for failing to provide adequate seller information. The European Commission has issued preliminary findings that Temu may have breached the Digital Services Act, with potential fines reaching 6% of global turnover.

The confirmed penalties across Asia and North America total nearly USD 3 M, with European exposure still unresolved. Nigeria’s NDPC previously demonstrated its enforcement capacity in 2025 by fining MultiChoice Nigeria NGN 766 M (USD 566 K) for data protection violations. In November last year, the watchdog also reached a settlement with Meta over a USD 32.8 M fine imposed in February for data privacy violations.

South Africa’s Trade Minister Parks Tau has signalled broader regulatory modernisation, telling parliament the department is finalising a framework to harmonise e-commerce laws and ensure a level playing field for local businesses. A report by the Localisation Support Fund estimated Shein and Temu’s rapid growth in South Africa may have cost the country more than 8,000 potential jobs between 2020 and 2024.

Temu has not commented on the potential financial exposure from either investigation but maintains it will engage constructively with authorities. The outcome of both probes will test whether Africa’s largest economies can translate regulatory ambition into effective enforcement against deep-pocketed global technology companies.