Temu filed a lawsuit against rival Shein, accusing it of bullying suppliers into not working with the online marketplace.
The fast fashion retailer was accused of breaking US antitrust laws by coercing manufacturers to shun working with Temu.
In a lawsuit filed on Friday, Temu alleges that Shein “forces manufacturers to sign loyalty oaths certifying that they will not do business with Temu”.
It said the practice had resulted in fewer choices and higher prices for shoppers.
However, a Shein spokesperson described the lawsuit as “without merit” on Monday, adding “we will vigorously defend ourselves”.
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The pair are already engaged in legal proceedings, as in March this year Shein accused Temu of working with influencers to shun the fashion giant on social media.
Shein also made headlines last week, as it faced a US lawsuit over copying independent designers.
The company was accused of using a “confusing corporate structure” which allowed it to get round theft accusations and “avoid liability”.
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