European Union: Adopted EU Commission decision designating Shein as Very Large Online Platform under the Digital Services Act

On 26 April 2024, the European Commission adopted the designation of Shein as a Very Large Online Platform under the Digital Services Act (DSA). The Commission determined that the platform reached the threshold of 45 million average monthly users, making them subject to content moderation, protection of minors and transparency and accountability measures of DSA. Such platforms are required to conduct systemic risk assessments to monitor the dissemination of illegal content and the adverse effects on fundamental rights and adopt measures to address risks related to the dissemination of illegal content, including child sexual abuse material, deepfake pornography and non-consensual posting of intimate material. Further, the platforms are required to adjust their systems to ensure the protection and well-being of children and address the risks by adopting measures preventing minors from accessing their platforms. The risk assessment will have to specify any negative effects on the physical and mental health of minors. Finally, the platforms would have to conduct external audits of their risk assessments, publish the advertisements displayed on their platforms, share data for research purposes and comply with transparency requirements regarding content moderation. Following its designation, Shein must comply within four months with the stringent obligations for Very Large Online Platforms set out in the DSA.