The Commission will oversee the so-called super-large online platform under threat of various regulatory restrictions and potential fines of up to 6% of Shein’s global annual turnover.
It joins more than 20 major platforms such as AliExpress, TikTok and Amazon, which are already designated as very large online platforms. Chinese e-commerce platform Temu will also face additional rules in the coming months after saying this month it was visited by 75 million Europeans every month.
Shein was initially a retailer selling its own products, but last year it became a platform by launching an online marketplace selling products from other manufacturers. Amazon and Zalando, a European marketplace, are currently challenging the EU’s decision to regulate retailers under the Digital Content Act.
The company, which moved its headquarters from China to Singapore in 2021, began selling to European countries in the early 2010s.
Shein has been criticized for using forced labor in China’s Xinjiang region, which he denies. It’s also currently the target of French lawmakers’ efforts to rein in fast fashion companies under a new environmental law.
Shein did not immediately respond to a request for comment.
Politico
