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Shein set to face EU scrutiny under digital content rules, Bloomberg News reports
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Shein set to face EU scrutiny under digital content rules, Bloomberg News reports
Mar 8, 2024 8:46 AM

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.

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