Zalando challenges EU tech rules, seeks exemption

The company argues it differs from Amazon and AliExpress and should not be subject to the same strict rules.

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Zalando, Europe’s leading online fashion retailer, has filed a legal challenge against the European Commission’s classification of the company under the Digital Services Act (DSA). The company argues that, unlike platforms such as Amazon and AliExpress, its business model does not fit into the “very large online platform” (VLOP) category, and it should not face the same stringent regulations.

The DSA, which came into force in 2022, requires VLOPs to take additional measures to manage harmful and illegal content or face significant fines. Zalando’s lawyer, Robert Briske, pointed out that the company operates a hybrid model, offering both its own products and those from third-party partners, making it distinct from other online platforms that purely function as marketplaces.

The European Commission contends that Zalando’s business model is similar to those of Amazon and AliExpress. The Commission’s lawyer, Liane Wildpanner, argued that Zalando is seeking to benefit from the flexibility of a hybrid model without bearing the regulatory burden of platforms like Amazon.

Zalando’s case is supported by Germany’s e-commerce association, BEVH, while other EU bodies, including the European Parliament, have sided with the Commission. The General Court is expected to deliver a ruling in the coming months.

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