Chinese-founded fast-fashion company SHEIN is set to face stricter EU online content rules after reporting a huge number of users, joining a group of companies that includes Meta Platforms, Alphabet’s, Google, Elon Musk’s X and TikTok.
The new rules, known as the Digital Services Act (DSA), classify companies with more than 45 million users as very large online platforms (VLOPs) and require them to do more to fight illegal and harmful content as well as counterfeit products on their platforms.
SHEIN, which is eyeing a US initial public offering, launched its marketplace in the EU in August last year. “We calculated that from 1st August 2023 to 31st January 2024, SHEIN had an average of 108 million monthly active users across EU member states,” the company said on its website. The European Commission said it was aware of SHEIN’s number of users. The DSA applies to all online platforms since 17th February.
The clampdown could come as another setback for SHEIN’s IPO, as the company is seeking Beijing’s nod to go public in a listing that will likely face tough scrutiny from US regulators.
