Shein Faces Stringent EU Online Content Regulations Amidst Surging User Base in the Region

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Shein Faces Stringent EU Online; After reporting a large number of users, the Chinese fast-fashion firm Shein is joining a group of companies that are facing tighter EU online content regulations. This includes Meta Platforms, Alphabet’s, Google, Elon Musk’s X, and TikTok.

Shein Faces Stringent EU Online

Companies with more than 45 million users are now considered very large online platforms (VLOPs) under the new Digital Services Act (DSA), which means they are obligated to take stronger measures to combat unlawful and harmful content and counterfeit goods on their platforms.

Last year in August, Shein debuted its marketplace in the European Union. The company is planning an initial public offering (IPO) in the United States.

“We calculated that from August 1, 2023 to January 31, 2024, Shein had an average of 108 million monthly active users across EU member states,” according to the business’s website.

According to the European Commission, they are aware of how many people use Shein.

We are now communicating with the platform in anticipation of a potential future designation. A representative from the Commission stated that the process is continuing but that a timeline is not yet available.

Requests for comment were not promptly addressed by Shein.
As on February 17th, the DSA is applicable to all digital channels.

With the bloc requesting information from some of the sixteen tech firms—including, Apple, Alibaba, Microsoft, and three pornographic sites—about their efforts to combat unlawful content and items supplied online, the DSA is currently investigating these businesses.

Social media giant X and ByteDance’s TikTok are already under investigation by the European Union. Up to six percent of a company’s worldwide sales is the maximum fine that can be levied for violations.

Shein is hoping to get Beijing’s approval to go public in a listing that will probably be closely watched by U.S. regulators, so this clampdown could be seen as another setback for the IPO.

The news that Shein was about to be subject to the DSA regulations was first reported by Bloomberg.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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