Why this matters
The European Commission on 17 February opened formal proceedings against the Chinese retailer Shein. At stake is not only the reputation of a single marketplace, but also the effectiveness of a new European tool for platform oversight: the Digital Services Act (DSA). The EU’s decision on Shein could set standards for all large online marketplaces and strengthen consumer protection, including for Ukrainians.
Reasons for the investigation
The Commission points to three main grounds: manipulative platform design, non-transparent recommendation algorithms, and the sale of illegal goods — among them items resembling child sex dolls. Some of these products have already led to a store ban in France.
"Illegal goods are banned in the European Union — whether they sit on a shop shelf or are sold on an online marketplace."
— Henna Virkkunen, Executive Vice-President of the European Commission for Technological Sovereignty
How it works: the DSA and oversight
Shein is classified as a very large online platform (VLOP) — having more than 45 million users in the EU gives the Commission the right to initiate formal investigations. The Irish regulator Coimisiún na Meán is also involved because the company is registered in Ireland. Before opening proceedings the EC sent three requests to Shein (June 2024, February and November 2025) — the responses underwent preliminary analysis and did not remove the concerns.
Consequences for platforms and the market
Under the DSA the Commission can impose fines of up to 6% of global annual turnover. Although such sanctions have not yet been widely applied, there is a precedent — in December 2025 the EU fined the social network X €120 million for breaching the same digital safety rules. For the platform this means: change your design and algorithms or pay — both reputation and business model are at risk.
What it means for Ukraine
The Shein investigation matters for us too. First, it increases the chances of reducing the availability of counterfeit and dangerous goods in Europe, and therefore in the supply chains where Ukrainian consumers and producers are indirectly involved. Second, it is a signal: the EU is taking digital sovereignty seriously — and Ukraine should align its regulatory approaches to protect its domestic market and promote exports of quality products.
Conclusion
This investigation is more than a story about a single marketplace. It tests whether European rules can compel global platforms to be accountable for the design, algorithms and products they promote. Questions for partners and businesses: will this be a step toward a more transparent digital market, and how can Ukraine take advantage of it to enhance its own security and competitiveness?
