Source: AFP
The European Union on Friday added Chinese-founded online retailer Shein to its list of digital companies big enough to be subject to tighter security restrictions.
The company joins Facebook, TikTok, X, YouTube in a list of 23 “very large online platforms”, which have more than 45 million monthly active users in the European Union.
From the end of August, four months after the designation, Shein will have to apply the stricter rules under the Digital Services Act (DSA), one of the EU’s new landmark laws against online platforms.
These include implementing measures to “protect consumers from buying unsafe or illegal goods, with a particular focus on preventing the sale and distribution of products that could be harmful to minors,” the European Commission said.
Shein said it has about 108 million monthly active users in the 27 EU countries.
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Beyond the EU, Shein has come under fire with a long line of accusations from allegedly exploiting its low-paid factory workers to promoting over-consumerism to harming the environment.
Brussels has unleashed its legal powers against the world’s biggest digital platforms, launching investigations against TikTok, X and Chinese retailer AliExpress.
Another Chinese shopping app, Temu, is expected to be added to the EU list after it announced in April that it has around 75 million monthly active users since entering the EU market a year ago.
Under the DSA, platforms must assess the specific risks to the rights and safety of Europeans from the content they publish — or the products sold in the case of online marketplaces such as Amazon and Shein — and report to regulatory authorities.
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They must also provide, at their own expense, an external audit once a year to verify compliance with the rules.
Larger platforms are also subject to increased transparency, with an obligation to provide access to their data to researchers approved by Brussels.
Taking on Chinese technology
Shein is not the only Chinese platform targeted by the EU.
Popular video-sharing app TikTok, owned by China’s ByteDance, has faced intense scrutiny in the EU — and beyond.
While facing a ban in the United States, TikTok is the subject of two investigations by the European Commission for alleged harm to minors.
On Wednesday, TikTok suspended the rewards program of its Lite app spinoff after the commission launched an investigation into its potentially addictive features.
Brussels has also not hesitated to use its trade weapons against China despite anger from Beijing, which accuses the EU of protectionism.
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On Wednesday, the EU announced an investigation into China’s medical technology market as Brussels confronts Beijing over green technology subsidies it suspects undermine fair competition.
This follows other investigations in recent months into Chinese suppliers of wind turbines, solar panel manufacturers, train and electric car subsidies.
Source: AFP