Shein is facing serious EU proceedings – the Chinese giant platform could pay a fine of up to billions

The investigation follows the French authorities suspending Shein’s operations in France in early November after finding several illegal and dangerous products for minors. With over 45 million active users in the EU, Shein is considered a very large online platform under the Digital Services Act (DSA) and is therefore directly subject to supervision by the European Commission.

The Commission has formally requested information from Shein on:
– what mechanisms it uses to protect minors,
– how it prevents the sale of illegal products,
– what age-determination and product verification systems are in place on the platform.

This is not yet a formal procedure, but it is a precursor to it may be.

Meanwhile, the European Parliament adopted a resolution calling on the Commission to strictly enforce the DSA and further strengthen consumer protection and market surveillance regulations in the context of the Shein case. Among other things, they urge:
– increasing financial support for market surveillance and customs authorities,
– introducing an EU-wide handling fee to finance inspections,
– accelerating action against infringing online platforms.

Record fines possible

If the Commission opens an investigation and finds an infringement, Shein’s annual global turnover could be 6 percent of the company’s turnover can be fined – this could amount to hundreds of millions of euros, given the size of the company.

Although no major platform has been fined under DSA since its launch in 2022, the Shein scandal could mark a turning point in EU action.