EU Faces Scrutiny Over Delays in Enforcing Digital Rules on Chinese E-commerce Platforms

Brussels, Belgium – The European Union is facing increasing criticism for its perceived slow pace in enforcing digital regulations against major Chinese e-commerce platforms, according to a recent assessment by Bloomberg Opinion writers Lionel Laurent and Andrea Felsted. The critique highlights concerns that the EU is "taking far too long enforcing its own rules" when it comes to these online marketplaces, as stated in a tweet from Bloomberg Opinion. This sentiment underscores a growing frustration regarding the timely application of new digital governance frameworks.

The Digital Services Act (DSA), a landmark EU regulation, came into full effect for very large online platforms (VLOPs) in August 2023 and for all other platforms in February 2024. It aims to make online platforms more accountable for the content they host and the products they sell, including obligations related to consumer safety, transparency, and the removal of illegal goods. Platforms like Shein, Temu, and AliExpress, which have significant market penetration in Europe, are subject to these stringent new rules.

Specific platforms have already drawn regulatory attention. Temu, for instance, was officially designated as a Very Large Online Platform (VLOP) under the DSA in April 2024, subjecting it to the strictest set of rules within four months of the designation. This designation followed concerns over its large user base, which exceeds 45 million monthly active users in the EU, and the potential risks associated with its operations, particularly regarding consumer protection and the sale of counterfeit or unsafe products. Shein, another prominent Chinese e-commerce giant, was similarly designated as a VLOP in April 2024, facing intense scrutiny over its business practices and supply chain.

The delay in enforcement, as argued by Laurent and Felsted, could allow these platforms to continue operating with less oversight than intended by the DSA, potentially impacting fair competition and consumer safety within the European single market. While the EU has begun the process of designating and investigating platforms, critics suggest the transition from designation to active enforcement and potential penalties needs to accelerate. The European Commission has initiated formal proceedings against some platforms, including AliExpress, over alleged breaches of the DSA, particularly concerning the dissemination of illegal content and product safety.

The prolonged regulatory process poses challenges for both consumers, who may be exposed to non-compliant products, and European businesses, who must adhere to strict regulations. The criticism from Bloomberg Opinion reflects a broader call for more decisive and timely action from EU regulators to ensure that the ambitious goals of the Digital Services Act are fully realized across the rapidly evolving e-commerce landscape. The ongoing scrutiny emphasizes the need for robust oversight to maintain a level playing field and protect consumers in the digital economy.