Shein Designated as a Very Large Online Platform by the European Union
The European Union has designated Chinese fast-fashion company Shein as a Very Large Online Platform (VLOP) due to its large user base. This designation comes with stricter rules on online content, requiring Shein to take more action to combat illegal and harmful content, as well as counterfeit products on its platform.
Companies with more than 45 million users are considered VLOPs under the EU's Digital Services Act (DSA). This means that Shein will face increased scrutiny and accountability for the content hosted on its platform.
Shein has stated its commitment to complying with the new 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. Sixteen tech firms, including Amazon, Apple, Alibaba, Microsoft, and three pornography sites, are also subject to the DSA. The EU has requested information from some of these companies on the steps they are taking to counter illegal content and goods sold online.
The EU is already investigating social media platform X and ByteDance's TikTok for potential violations of the DSA. Companies found in violation of the DSA can face fines of up to 6% of their global turnover.