Online retailer Zalando needs to enforce tougher regulations for its digital offerings - Online retailer Zalando faces tighter regulations for its digital services
Zalando Classified as a "Very Large Online Platform" Under EU's Digital Services Act
In a significant development, the European Commission has classified German fashion retail giant Zalando as a "very large online platform" under the Digital Services Act (DSA) in April 2023. This classification was based on Zalando's over 83 million active users per month in the EU, which surpasses the threshold of 45 million active users required for this classification.
The DSA, introduced to ensure platforms quickly remove illegal third-party content, now applies stricter requirements to Zalando and other large platforms and search engines. These requirements include submitting annual risk assessments and sharing data with authorities and researchers.
However, Zalando has faced challenges in implementing these requirements. The company revealed that it was unable to distinguish which of its more than 83 million users had been exposed to the content from the partner program, leading to all users being counted. This issue could potentially impact Zalando's compliance with the DSA's requirements.
Zalando maintains that it offers only curated, high-quality products from established and trustworthy brand partners. The company argues that its business model is hybrid, combining the sale of its own products and third-party products within a partner program. However, the EU court has ruled that, with regard to third-party sales, Zalando is a platform under the DSA.
Despite the EU court's decision, Zalando believes the court has not adequately considered that its tested selection does not pose a systemic risk for the spread of harmful or illegal third-party content. In response, the company has announced it will appeal the EU court's decision to the Court of Justice of the European Union.
Zalando's headquarters are located in Luxembourg, a strategic location for many tech companies due to its favourable business environment and proximity to the EU institutions. The company's appeal to the Court of Justice of the European Union will be closely watched by the tech industry and regulators alike, as it could set a precedent for how similar cases are handled in the future.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
- Abdominal Fat Accumulation: Causes and Strategies for Reduction
