The European Union has designated Chinese-founded fast-fashion company Shein as a very large online platform (VLOP) after it reported a huge number of users, the bloc said in a statement on April 26.
Tech giants with user bases exceeding 45 million individuals are classified as Very Large Online Platforms (VLOPs) under the European Union’s Digital Services Act (DSA), subjecting them to heightened regulations regarding online content.
These regulations mandate a more rigorous approach to combating illegal content, harmful material, and counterfeit goods across their platforms.
The Europe Union’s Digital Services Act (DSA) will help protect children from pornography, according to EU internal market commissioner Thierry Breton. https://t.co/sQskX5bBQX
— Brussels Signal (@brusselssignal) August 11, 2023
In response, online retail giant Shein has affirmed its commitment to compliance with the DSA, emphasizing its alignment with the Commission’s goal of ensuring consumer safety in EU online markets. Leonard Lin, Shein’s global head of public affairs, underscored the company’s dedication to contributing to a secure online shopping environment.
Having launched its marketplace in the EU in August last year, Shein is among the numerous companies now operating under the purview of the DSA, which came into effect for all online platforms on February 17.
Sixteen prominent tech firms, including Amazon, Apple, Alibaba, Microsoft, and several adult entertainment platforms, fall under the scope of the DSA.
The EU has requested information from these entities regarding their measures to combat illegal content and regulate goods sold online.
Furthermore, ongoing investigations by the EU target social media platform X and ByteDance’s TikTok, underscoring the regulatory scrutiny faced by major online platforms.
Non-compliance with the DSA can lead to substantial fines, with penalties of up to 6% of a company’s global turnover.
Facebook and Instagram owner Meta will charge EU users who want to avail of the bloc’s data protection benefits, it says. https://t.co/qjdlrbBhHB
— Brussels Signal (@brusselssignal) October 30, 2023
