The European Commission is investigating whether Shein is taking sufficient measures to prevent the shipment of illegal and dangerous products to customers in EU countries. The investigations were prompted by findings in France of several items and goods that do not meet EU criteria such as the safety of children's toys or environmentally hazardous materials.
The European Commission has requested extensive information from Shein under the Digital Services Act. The focus is mainly on whether the platform is effectively acting against the shipment of dangerous and prohibited products. The request is meant to clarify whether Shein complies with European obligations.
In practice, this step means that Brussels will also take action against other Chinese online stores such as AliExpress and Temu. Previously, the EU also initiated a similar investigation against the American Amazon. The American authorities have been very reluctant about it, but the EU believes European standards for imported products should also apply to goods sent by post.
The European internet law Digital Services Act is the most important enforcement tool in this process. It can obligate internet platforms and online stores to block harmful products, take measures to protect users, and respond more quickly to requests from EU authorities. The recent discoveries have led to a tightening of that control.
In several EU countries, there is discussion about temporarily suspending platforms when violations are serious or persist. This debate has intensified due to the recent French case, which highlighted potential consequences for consumer safety throughout the EU.
At the same time, another development is taking place: the influx of cheap packages from China. Platforms and online stores like Shein, Temu, and AliExpress ship millions of parcels daily directly from Chinese factories to consumers in Europe. This raises concerns about unfair price advantages.
According to several European parties, unfair competition arises for European suppliers because Chinese senders do not have to pay VAT on their shipped goods. European companies, however, must pay import duties and VAT on exports, creating large price differences. This is seen as a bottleneck for a level playing field.
Therefore, the EU is working on a new import tax for small packages with low value. The long-standing exemption for imports of goods under roughly 150 euros will be abolished as soon as possible. An import tax of 2 euros per package is being considered. This is intended to reduce price disparities and limit the influx of untaxed shipments.