The Chinese online clothes retailer Shein is set to face strict EU digital rules after the European Commission classified the company as a "very large online platform" (VLOP) on Friday.
Businesses classified as VLOPs and search engines with more than 45 million active users per month are subject to particularly strict requirements.
These include submitting a risk assessment once a year concerning harmful content and proposing countermeasures. They also have to share data with authorities and researchers.
Requirements also include countering the sale of counterfeit goods and harmful products. Other measures involve preventing the sale of goods that could be harmful to minors.
Shein has until the end of August 2024 to comply with the mandatory obligations. The designation takes place under the EU's Digital Services Act (DSA).
The DSA aims to ensure that large online platforms police online content by removing illegal content from their sites more quickly than before. Large platforms will have to follow more rules than smaller ones.
The commission has also designated Google's shopping marketplace, US internet giant, Amazon, and the Chinese online retailer Alibaba as VLOPs.
Amazon is challenging the designation in the EU's court system.
The Seattle-based tech company said that it would be at a disadvantage if it were designated as a VLOP and forced to follow the DSA regulations when other competitors were not.
Berlin-based online fashion retailer Zalando has also filed a complaint against its VLOP classification.
