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Judge Tosses Key Temu Claims in Antitrust Fight with Shein

By  |  October 1, 2025

Shein secured a partial legal victory this week after a U.S. judge dismissed several claims in a high-profile lawsuit brought by rival Temu. According to Reuters, the ruling came from U.S. District Judge Timothy Kelly in Washington, D.C., who found that parts of Temu’s case could not proceed under U.S. antitrust law.

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    Temu, which entered the U.S. market in 2022, accused Shein of dominating the fast-fashion space and attempting to block its entry through aggressive tactics. Per Reuters, Judge Kelly ruled that Temu’s antitrust and trade secret claims could not move forward because they centered on alleged conduct in China, outside the court’s jurisdiction. However, the judge allowed Temu to continue pursuing accusations related to Shein’s alleged abuse of copyright and trademark laws.

    Specifically, the lawsuit claims Shein submitted thousands of false copyright takedown requests against Temu’s product listings and violated protections for Temu’s promotional mobile games. The case also involves disputes over trademark use. Both companies, which have roots in China, have rapidly grown their U.S. presence in recent years as budget-conscious consumers turned to cheaper online shopping options.

    Read more: Shein Warns of Higher Costs for French Shoppers Amid EU Fee Proposal

    According to Reuters, Temu originally argued that Shein controlled 75% of the U.S. fast-fashion market when it entered, alleging that Shein used intimidation tactics against suppliers to maintain dominance. Judge Kelly rejected those claims but left the door open for Temu to press forward on intellectual property issues.

    The two e-commerce giants have previously clashed in other U.S. courts. A separate case accusing Temu of using social media influencers to spread misleading statements about Shein was dropped earlier this year.

    The ongoing dispute is being heard under the case name Whaleco Inc v. Shein Technology LLC, in the U.S. District Court for the District of Columbia, case number 1:23-cv-03706.

    Source: Reuters