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“EU Designates Shein as Very Large Online Platform Under Digital Services Act”

The European Union (EU) has classified Shein, a fast-fashion company founded in China, as a Very Large Online Platform (VLOP) due to its expansive user base, which has surpassed 45 million users. This categorization under the EU’s Digital Services Act (DSA) imposes stricter regulations on platforms regarding online content, necessitating more robust measures against illegal and harmful content, as well as counterfeit products.

In response to this designation, Shein has affirmed its commitment to adhering to the regulations outlined by the EU. Leonard Lin, Shein’s global head of public affairs, underscored the company’s dedication to ensuring that consumers in the EU can shop online with confidence. Shein, renowned for its rapid growth and popularity, launched its marketplace in the EU in August of last year and is contemplating a US initial public offering.

The significance of this designation lies in the implementation of the DSA, which became effective on February 17th and applies to all online platforms. Several tech giants and platforms, including, Apple, Alibaba, Microsoft, and certain pornography sites, have already been subjected to its regulations. The EU has requested information from these companies regarding their efforts to combat illegal content and goods sold online. Additionally, the EU is actively investigating other platforms, such as the social media platform X and ByteDance’s TikTok, with potential violations carrying fines of up to 6% of a company’s global turnover.

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