Shein Designated as a Very Large Online Platform by the European Union
The European Union has designated Chinese-founded fast-fashion company Shein as a very large online platform (VLOP) due to its massive user base. This designation comes under the EU's Digital Services Act (DSA), which imposes stricter rules on online content for platforms with over 45 million users.
Under the DSA, VLOPs are required to take more proactive measures to combat illegal and harmful content, as well as counterfeit products on their platforms. Shein has expressed its commitment to complying with these regulations.
"We share the Commission's ambition to ensure consumers in the EU can shop online with peace of mind, and we are committed to playing our part," said Leonard Lin, Shein's global head of public affairs.
The DSA applies to all online platforms since February 17, 2023. Currently, sixteen tech firms, including Amazon, Apple, Alibaba, Microsoft, and three pornography sites, are subject to the DSA. The EU is also investigating social media platform X and ByteDance's TikTok for potential violations. Companies found in violation of the DSA can face fines of up to 6% of their global turnover.