Chinese fast-fashion company Shein set to face tougher EU online rules

The European Union designated Chinese-founded fast-fashion company Shein as a very large online platform (VLOP) after it reported a huge number of users, the EU said in a statement on Friday.

Companies with more than 45 million users are regarded as VLOPs under the EU’s Digital Services Act (DSA), facing stricter rules on online content that require them to do more to fight illegal and harmful content as well as counterfeit products on their platforms.

The online retailer said it was committed to comply with the rules.

“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,” Leonard Lin, Shein’s global head of public affairs, said in a statement.

Shein, which is eyeing a U.S. initial public offering, launched its marketplace in the EU in August last year.

The DSA applies to all online platforms since Feb. 17.

Sixteen tech firms, including Amazon.com, Apple , Alibaba, Microsoft and three pornography sites, are subject to the DSA, with the bloc asking some for information on steps taken to counter illegal content and goods sold online.

The EU is already investigating social media platform X and ByteDance’s TikTok. Violations can result in fines of as much as 6 per cent of a company’s global turnover.