France's Minister Defends La Poste's Deal with Chinese Giant Temu Amidst Regulatory Crackdown

France's commerce minister recently found himself defending a controversial deal between the state-owned postal service, La Poste, and the Chinese e-commerce giant Temu. This defense comes at a sensitive time, just weeks after the Paris prosecutor initiated an investigation into multiple online marketplaces, signaling a heightened scrutiny of digital commerce operations within the country.

The broader landscape of online retail in France is currently fraught with challenges, as illustrated by the government's threat to ban Shein's marketplace earlier this week. This threat stemmed from the discovery of illicit items, including child-like sex dolls and prohibited weapons, being sold on its platform. Ministers are expected to deliver preliminary findings soon regarding Shein's compliance with local regulations. In a statement on BFM TV, Serge Papin, the commerce minister, underscored the necessity for France to curb what he termed a "digital Wild West," noting the frequent detection of illegal goods arriving in small parcels at French borders.

Despite these widespread concerns, Papin was pressed to explain an October agreement involving La Poste and Temu, an online marketplace owned by Chinese e-commerce giant PDD Holdings. Under this arrangement, La Poste is tasked with providing last-mile delivery services for parcels destined for Temu customers in France. The deal has attracted significant criticism from lawmakers in recent weeks, who argue that the government is indirectly supporting a company accused of undermining French industry and exacerbating environmental issues.

Addressing the criticism surrounding the La Poste-Temu collaboration, Minister Papin asserted that the state-owned company simply had to "do its job." Neither Temu nor La Poste immediately responded to requests for comment regarding the controversy.

However, in a statement released on Wednesday, La Poste clarified its position, describing the agreement as a "classic" logistics services contract. The postal service explained that the deal merely extended an existing collaboration that had been in place since Temu first entered the French market in 2023. La Poste further emphasized its obligation to treat all its customers equally, applying the same terms and conditions of sale, and therefore, it cannot refuse access to its services to any legitimate entity.