EU scrutinizes Shein over online content compliance
The EU’s Digital Services Act demands stricter measures from platforms like Shein, potentially impacting the company’s plans for a US IPO.
Shein, a prominent fast-fashion retailer, is reportedly under heightened scrutiny by the European Union due to new regulations targeting harmful and illegal online content.
The EU’s Digital Services Act (DSA), implemented in February 2024, applies to large platforms like Shein, requiring them to take stronger measures against such content.
The case follows similar investigations into tech giants such as Amazon and Meta, and the EU is seeking details from companies on how they combat illegal content and counterfeit goods online.
This increased oversight may impact Shein’s plans for a US initial public offering (IPO), adding to existing regulatory challenges in the US and Chinese markets.
Why does it matter?
The DSA, enforced since November last year, mandates major online platforms and search engines to intensify efforts against illegal content and public security threats. The Commission’s inaugural investigation under the DSA, initiated in December 2023, targeted social media giant X for alleged violations of its obligations. The full implementation of the law could pose even greater challenges for platforms already struggling to demonstrate compliance with the new regulation.
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