PDD Faces New French Eco Fees on Temu

PDD Holdings faces a fresh regulatory challenge in Europe after France introduced an eco-contribution fee on ultra-fast fashion items. The measures directly affect marketplace platforms such as Temu, which is owned by PDD Holdings. On 3 September 2026, China's Ministry of Commerce demanded that France halt and repeal the law, warning of potential countermeasures.

The French legislation establishes a per-garment eco-contribution fee in 2026 ranging from a minimum of 0.25 EUR to a maximum of 12.00 EUR. Specific categories carry dedicated charges, including 0.50 EUR for underwear, 2.00 EUR for T-shirts, 9.00 EUR for jeans, and 12.00 EUR for jackets.

The law limits the statutory fee to a cap of 50% relative to the pre-tax retail price of an item. However, the maximum fee is scheduled to rise to 19.50 EUR per garment by 2030.

These fees pose a hurdle to Temu's low-cost retail model across the region. As of 2026, Temu counts 92 million active users across the European Union. PDD Holdings has not provided figures regarding its direct financial exposure to the new French rules.