The EU Commission led by Competition Commissioner Margrethe Vestager is tightening the reins for the Chinese online retailer Shein. As the Brussels authority announced, Shein was officially classified in the category of very large online platforms in the “Digital Markets Act” on Friday.
Shein attracts millions of European consumers with bargain prices. In the EU, the platform has an average of more than 45 million monthly users. This puts the company above the threshold for classification as a very large online platform.
This means that Shein must take extensive precautions by the end of August to protect once morest, for example, counterfeit products and violations of intellectual property rights. In addition, annual risk assessment reports will be mandatory for the company, which must examine the consequences for the health and safety of consumers.
The Digital Markets Act affects a total of 23 platforms and online retailers such as Meta, X, TikTok, Amazon and Zalando.
