2024-04-26 09:31:58 ET
This Friday, the EU released a statement classifying Shein , a Chinese fast-fashion company, as a Very Large Online Platform (VLOP) because of its large number of users.
What are VLOPS?
As per the EU’s Digital Service Act (DSA), companies with over 45 million users are deemed as VLOPS. These companies are subjected to stricter rules concerning online content, which require them to take more proactive measures to combat illegal and harmful content along with counterfeit products on their platforms.
The company has agreed to comply with these rules and regulations. Shien established its marketplace in the EU in August 2023 and has its eyes set on a U.S. initial public offering.
This retail company was founded in 2012 and has 4 months, or until the end of August, to meet all EU Commission’s regulations.
The application of DSA to online platforms
Since 17 February, the DSA has applied to all online platforms. Shien is the 23 rd online platform to be deemed a VLOP as per these new EU rules. In April 2023, a few other prominent websites such as Booking.com, Facebook, Amazon and X were among the first online platforms to be dubbed as VLOP.
Temu, an e-commerce platform, run by the Chinese company PDD Holdings, has faced additional questioning regarding its business as there is a continual surge in its user numbers.
Since the implementation of this legislation, the Commission has initiated various enforcement and compliance checks, including two targeting TikTok, over its measures to safeguard child users.
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