Mikkel Christensen
The European Commission has opened a case against Chinese online retailer Shein under the European Union’s digital regulatory framework.
The European Commission has opened a case against Chinese online retailer Shein under the European Union’s digital regulatory framework. The action is based on the digital services act, which imposes obligations on large online platforms operating in the EU.
Shein has been designated as a very large online platform and is therefore subject to enhanced requirements.
Case reviewed under digital services act
The digital services act requires major platforms to conduct risk assessments and ensure greater transparency. Companies must demonstrate how they address illegal content and consumer protection.
The rules apply to platforms with a significant user base in the European Union.
Focus on consumer protection standards
The Commission’s review includes how Shein provides information about sellers and products offered on its platform.
Online marketplaces must comply with EU product safety standards and ensure clear labeling of advertising content.
Part of broader enforcement strategy
The case forms part of the EU’s broader oversight of global digital companies operating within the bloc.
Other major platforms have previously faced similar regulatory scrutiny under the same framework.
Potential consequences
If a company fails to meet its obligations, the Commission can require corrective measures and impose financial penalties.
The investigation will determine whether Shein complies with the applicable rules.
Expanding oversight of global platforms
The development illustrates how the EU is implementing its digital legislation across international companies that provide services within its market.
The case against Shein represents another step in the enforcement of the bloc’s digital regulatory regime.
Source: AP News
