Digital providers’ compliance with the European DSA: the Shein case

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The DSA’s obligations are applied to almost all digital/online services having impact on the functioning of the online systems: hence, all online services operating in the EU-27 are required to comply with the DSA. The DSA follows a proportionate approach, which means that the obligations assigned to the different online players match their role, size and impact in the existing online system. The “Shein case” is a vivid example of the DSA’s in action. 

Background
The Digital Services Act (DSA) introduces rules for online services used by European citizens in their everyday life. These services include marketplaces, social media networks, app stores, and online travel and accommodation platforms. The DSA replaces 27 different previous regulations with one unified framework, giving corporate entities and citizens legal certainty and the ability to scale up across the EU member states.
The main goal of the DSA is to create a digital space that respects citizens and consumers’ fundamental rights. By establishing a clear set of rules across the EU, the DSA also enables smaller platforms, SMEs and start-ups to scale up in Europe, fostering innovation, growth and competitiveness.
The DSA and the Digital Markets Act (DMA) complement each other. The DMA includes rules for gatekeeper online platforms. Gatekeepers function as bottlenecks between businesses and consumers for digital services, affecting competition and the functioning of the EU internal market. Some of these services are also covered in the DSA, but for different reasons and with different types of provisions. Find out more about how the DMA benefits you.
More in: https://digital-strategy.ec.europa.eu/en/policies/digital-services-act

Short history
In just two years, online platforms have reversed almost 50 million decisions affecting users’ content or accounts, helping users exercise their Digital Services Act (DSA) rights online in the EU. With the DSA, users in the EU are more empowered online, online platforms face greater accountability, and the online environment is more transparent.
This “instrumental service”, as the first of its kind in the world, gave users the right to challenge platforms’ content moderation decisions that affect, suspend, delete or ‘shadow ban’ their content or accounts. Since its application, 30% of 165 million content moderation decisions that users appealed through the platforms’ internal mechanisms have been reversed.

Notably, in the first half of 2025, 99% of content moderation decisions were taken by platforms to enforce their own terms and conditions, rather than to remove content reported as illegal under EU or national law.
During the first half of 2025, out-of-court settlement bodies reviewed over 1,800 disputes related to content on Facebook, Instagram and TikTok in the EU, overturning the platforms’ decisions in 52% of the closed cases – restoring content and accounts, in a faster and cheaper way than going to court.
The DSA has also driven concrete changes in user safety and wellbeing. Targeted advertisements to minors on online platforms are prohibited since 2024 in the EU, thanks to this legislation. The DSA also obliges online marketplaces to counter the spread of illegal goods, improve the traceability of traders, and quickly inform customers who purchased any illegal product on their marketplace, offering options for redress.
Reference and citations from: https://digital-strategy.ec.europa.eu/en/news/two-years-digital-services-act-allows-50-million-content-moderation-decisions-platforms-be-reversed

Assessing risks
The Commission enforces the DSA together with Digital Services Coordinators (DSCs) at the national authorities’ level; they supervise the compliance of the platforms established in their territory. The Commission is primarily responsible for the monitoring and enforcement of the additional obligations applying to the biggest platforms and search engines, such as the measures to mitigate systemic risks. National digital services coordinators supervise and enforce compliance with the DSA in the corresponding member states.
Reference to national DSCs in: https://digital-strategy.ec.europa.eu/en/policies/dsa-dscs
The DSA recognises that the biggest online platforms – those with over 45 million monthly users in the EU – play a significant role in our societies and democracies. They must therefore follow specific rules to ensure they do not pose unintentional risks to us, such as amplifying illegal content and shaping opinion at scale, and to minimise the possibility of malicious actors using them to inflict harm on Europe.
In particular, these large platforms must identify and analyse wide-spread risks; these risks include: – the spreading of illegal content, as defined in national or EU laws; – threats to fundamental rights, such as freedom of expression; – threats to media freedom and pluralism, public security and electoral processes; and – gender-based violence, public health, protection of minors and physical and mental wellbeing.
Once these risks are identified, these larger platforms must put measures in place to reduce them. Similarly, these platforms must meet other requirements to enhance transparency and accountability (a full list of these platforms is on the Commission’s website).
On supervision in: https://digital-strategy.ec.europa.eu/en/policies/list-designated-vlops-and-vloses

Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, noted that illegal products are prohibited in the EU, whether they are on a store shelf or on an online marketplace. Hence, the Digital Services Act “keeps shoppers safe, protects their wellbeing and empowers them with information about the algorithms they are interacting with”. Therefore, the Commission will assess whether Shein is “responsibly respecting these rules”.

The investigation
Present Commission’s decision to investigate Shein, follows preliminary analyses of the risk assessment reports provided by Shein, followed by replies to the Commission’s formal requests for information, as well as information shared by third parties. The Commission sent already three requests for information to Shein during June 2024 – November 2025 seeking more information on the company’s compliance with the DSA, in particular in relation to consumers’ and minors’ protection, and on the transparency of its recommender systems.
The present formal proceedings under the DSA are without prejudice and complementary to the ongoing coordinated action regarding Shein’s compliance with its obligations under consumer law, led by the Consumer Protection Cooperation (CPC) Network of national consumer protection authorities and enforcement actions at national level. National authorities in the EU states are responsible for the enforcement of the EU-wide consumer protection laws. In order to protect consumers when shopping across national borders, Consumer Protection Cooperation Regulation nr. 2006/2004 established a network of competent public enforcers to tackle these issues in a coordinated manner.
Reference on CPC network in:
https://commission.europa.eu/live-work-travel-eu/consumer-rights-and-complaints/enforcement-consumer-protection/consumer-protection-cooperation-network_en

Similarly, the formal proceedings under the DSA are without prejudice to actions and measures of market surveillance authorities concerning the enforcement of the General Product Safety Regulation (GPSR), including the follow-up to the first product safety sweep focusing on childcare articles carried out in 2025.
More on GPSR in: https://eur-lex.europa.eu/EN/legal-content/summary/general-product-safety-regulation-2023.html

The Commission intends to carry out an in-depth investigation as a matter of priority; the opening of formal proceedings does not prejudge the outcome. Basically, the investigation will focus on the following areas in the Shein’s digital services:
1= the company’s system that is covering the sale of illegal products in the EU-27, including content which could constitute child sexual abuse material, such as child-like sex dolls.
2= the risks linked to the addictive design of the service, including giving consumers points or rewards for engagement, as well as the systems Shein has in place to mitigate such risks. Addictive features could have a negative impact on users’ wellbeing and consumer protection online.
3= the transparency of the recommender systems that Shein uses to propose content and products to users. Under the DSA’s rules, Shein must disclose the main parameters used in its recommender systems and it must provide users with at least one easily accessible option that is not based on profiling for each recommender system.

Next steps
After the formal opening of proceedings, the Commission will continue to gather evidence, for example by sending additional requests for information to Shein or third parties or conducting monitoring actions or interviews.
The opening of formal proceedings empowers the Commission to take further enforcement steps, including interim measures or the adoption of a non-compliance decision. The Commission is also empowered to accept commitments made by Shein to remedy matters subject to the proceeding.
The DSA does not set any legal deadline for bringing formal proceedings to an end. The duration of an in-depth investigation depends on several factors, including the complexity of the case, the extent to which the company concerned cooperates with the Commission and the exercise of the rights of defense. Moreover, the opening of formal proceedings does not prejudge its outcome or any other proceedings that the Commission may decide to initiate under other articles of the DSA.