The Bloomberg Law article, Shein, Temu Take Fast-Fashion Antitrust Showdown to US Courts, takes a deep dive into the legal feud between fashion giants Shein and Temu, shedding light on the inner workings of the ultra-fast fashion industry. Kathleen Bradish, VP of Legal Advocacy at AAI, notes that their decision to litigate in US courts highlights the advanced state of private antitrust enforcement in the US compared to nations relying on government enforcement. However, this move also exposes the companies to risks, as they may be required to reveal usually guarded internal documents. Bradish suggests that this transparency could provide valuable insights into the industry’s tactics and strategies, offering a unique view of the competitive landscape. From the article:
Shein and Temu’s move to duke it out in US courts reflects that US private antitrust enforcement is more highly developed than in nations that rely on government enforcement, said Kathleen Bradish, vice president of legal advocacy for the American Antitrust Institute. But it also carries risks: The companies likely will have to turn over internal documents that businesses, especially ones associated with China, rarely let anyone see.
“They are going to have to open to the doors a bit to scrutiny,” Bradish said. “US lawyers are going to see the documents. The judges are going to see the documents.”
In the meantime, Temu faces an uphill battle. Courts are reluctant to inhibit legitimate competition when trying to capture anti-competitive conduct, said Bradish of the American Antitrust Institute.
“There is a fear on the part of courts to interfere with the business decisions of a corporation,” Bradish said.
