In a recent development, the European Union has expanded its list of digital giants subjected to stricter safety regulations to include Chinese online retailer Shein. Alongside established giants like Facebook, TikTok, and YouTube, the fast fashion e-commerce platform now faces heightened regulations under the Digital Services Act (DSA), a pivotal legislative initiative aimed at regulating online platforms.
Starting from the end of August, Shein will be required to adhere to stringent guidelines outlined in the DSA. These measures primarily focus on safeguarding consumers against the purchase of hazardous or illicit goods, with a specific emphasis on shielding minors from potential harm. The European Commission, which oversees these regulations, has underscored the imperative of protecting consumers in the digital sphere.
With approximately 108 million monthly active users within the EU alone, Shein finds itself at the center of broader debates surrounding online commerce practices. Beyond the EU's borders, Shein has encountered substantial criticism, ranging from allegations of exploitative labor practices to exacerbating hyperconsumerism and environmental degradation.
The EU's regulatory efforts extend beyond Shein, encompassing other Chinese digital players like TikTok. This video-sharing platform, owned by ByteDance, has been under intense scrutiny, particularly regarding its impact on minors. In response to concerns raised by the European Commission, TikTok has taken steps such as suspending its reward program on its Lite app.
Brussels' proactive stance on regulating digital platforms extends to trade relations with China. Despite potential tensions, the EU has initiated investigations into various sectors, including the medical device market and green technology subsidies. These actions signal the EU's commitment to ensuring fair competition and safeguarding European interests in the global marketplace.
