2024-04-27 04:17:19
Because the online fashion retailer was classified as a very large online platform, the requirements are now stricter. The consequences for the Chinese company are far-reaching.
The EU Commission will in future tighten its grip on the Chinese online retailer Shein, which attracts millions of European consumers to its platform with bargain prices for fashion items. As the Brussels authority announced, Shein was officially classified in the category of very large online platforms on Friday under the Digital Markets Act (DMA) – and is therefore subject to stricter requirements.
As the EU Commission further explained, Shein claims to have an average of more than 45 million monthly users in the European Union. This means that the company is above the threshold for classification as a very large online platform.
The consequences for Shein
This means that Shein must now take extensive precautions within four months, i.e. by the end of August, to protect against, for example, counterfeit products and violations of intellectual property rights. In addition, annual risk assessment reports will be mandatory for the Chinese company, which must particularly examine possible adverse effects on the health and safety of consumers. The focus is on the physical and mental well-being of underage users.
Since the end of August, the DSA’s requirements for digital giants initially affected 19 large online services, including the online retailers Amazon and Zalando, services such as Google Maps and platforms such as Facebook, TikTok and the service X. The platforms Pornhub, Stripchat and XVideos were added in December. Including Shein, 23 major online services now fall into this category.