March 8 (Reuters) - Fast-fashion company Shein is set to
face scrutiny under the EU's rules framed to clamp down on
harmful and illegal content online, Bloomberg News reported on
Friday citing people familiar with the matter.
China-based Shein will soon be designated under the EU's
Digital Services Act (DSA), the report said.
The European Commission and Shein - which is eyeing a U.S.
initial public offering - did not immediately respond to
Reuters' requests for comment.
The DSA applies to all online platforms since Feb. 17 and
requires companies with large online platforms and search
engines to double down on efforts to tackle illegal content and
risks to public security.
More than a dozen tech firms, including Amazon ( AMZN ),
Apple ( AAPL ), Meta and Alphabet, have
already come under the EU's scrutiny under the DSA, with the
bloc asking the companies for information on measures they have
taken to counter illegal content and goods sold online.
The EU is already investigating social media company X and
ByteDance's TikTok.
The clamp-down could come as another setback for Shein's
IPO, as the company is seeking Beijing's nod to go public in
what is anticipated to be a listing that will face
tougher-than-expected U.S. regulatory scrutiny.