Quick Facts
- Shein alleges Temu copied 2,300 product images to sell look-alike garments in what lawyers call copyright infringement ‘on an industrial scale’
- Temu countersues claiming Shein uses ‘mafia-style intimidation’ of suppliers and exclusive agreements that violate British competition law
- The case offers rare public insight into supply chain operations of two companies with combined annual revenue exceeding $44 billion
Ultra-fast fashion giants Shein and Temu are trading legal blows in London’s High Court in a trial that exposes the competitive practices behind two of the world’s largest e-commerce platforms.
Shein accuses Temu of copyright infringement at ‘astonishing’ levels. The company claims Temu copied roughly 2,300 product images created by Shein employees to sell identical garments. Shein’s lawyer Benet Brandreth told the court this was ‘an attempt to steal a march on an existing participant in the market.’
Temu fired back with allegations of anti-competitive behavior. The company claims Shein waged an ‘aggressive and relentless battle’ using copyright allegations to stifle competition. Temu’s lawyer Charlotte May said the case ‘has nothing at all to do with the protection of any intellectual creativity in photographs, and everything to do with an attempt by the claimant to stifle legitimate competition.’
The counter-claims include accusations that Shein broke British competition law through exclusive supplier agreements. Temu alleges ‘mafia-style intimidation’ of suppliers in China and seeks damages tied to thousands of product listings removed after Shein secured a court injunction.
The London proceedings are part of a broader international legal battle. The companies are also suing each other in the United States, where a federal judge consolidated their dueling lawsuits into a single proceeding.
Both companies dominate the ultra-fast fashion market through different strategies. Shein generated $24 billion in annual revenue and holds a 1.53% share of the global apparel industry as of 2024. The company led the U.S. fashion e-commerce market with $19 billion in net sales.
Temu’s parent company PDD Holdings achieved a $128.79 billion net worth. The platform reached $20 billion in gross merchandise value in the first half of 2024 and became the second most-visited online shopping site globally by September 2024.
The litigation offers rare public insight into supply chain operations that typically remain opaque. Both companies built global customer bases through low-cost apparel and extensive supplier networks in China. Shein works with 8,338 manufacturers representing 70-80% of capable suppliers in the ultra-fast fashion space.
Legal experts say the case will have far-reaching effects on e-commerce competitive conduct. The outcome could shape how platforms use supplier relationships and product imagery in an increasingly crowded marketplace.
Both companies face mounting regulatory pressure beyond this lawsuit. New EU customs rules starting July 2026 will levy a €3 charge on parcels under €150, specifically targeting Chinese e-commerce platforms and potentially forcing price increases of up to 20%.
Read more: Shein, Temu Trade Blows as UK Trial Spotlights Supply Chains
