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EU Commission puts Shein under stricter control
The EU Commission is tightening the rules for Shein in Europe. Chinese online fashion retailer under stricter scrutiny under Digital Markets Act. Find out more at IT Business!
EU Commission puts Shein under stricter control
The European Commission has decided that Shein, a Chinese online retailer that attracts millions of European consumers with cheap fashion items, will be subject to stricter rules. This decision comes under the Digital Markets Act (DMA), which divides companies into different categories. Shein has officially been classified as a very large online company, meaning it must follow stricter regulations.
Shein's classification as a very large online platform has implications for the way the company can operate in Europe. The stricter rules are intended to ensure fair competition practices and protect consumers' rights. This means that Shein must meet certain transparency requirements and may have to take measures to adapt its business model to the new requirements.
The EU Commission's decision regarding Shein is part of a broader effort to improve regulation of online platforms and strengthen competition in the digital economy. Classifying companies like Shein in the category of very large online platforms aims to curb abuse and unfair business practices in order to create a balanced and transparent digital environment for consumers.
Shein will now be faced with adapting to the new rules and ensuring its business operates in compliance with the Digital Markets Act regulations. The exact steps the company will need to take to comply with the requirements are not yet known, but Shein is expected to work closely with regulators to make the necessary changes.