Zalando challenges European Commission’s ‘systemic’ platform designation under the DSA

Zalando filled a lawsuit against European Commission for classifying the company a ‘systemic’ very large platform under the Digital Services Act (DSA). The company argues that it doesn’t meet the criteria for such classification and criticizes the lack of transparency in the Commission’s process.

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German e-commerce company Zalando has taken legal action against the European Commission, contesting its categorization as a ‘systemic’ very large platform under the Digital Services Act (DSA).

Zalando argues that it does not meet the requirements for such classification and asserts that the Commission’s process lacks transparency and consistency. The company highlights its primarily retail-oriented business model and maintains that it does not present the same systemic risks as major tech giants such as Google and Facebook. Zalando also criticizes including its retail services in the assessment, pointing out that the DSA does not cover retail. The company further argues that the absence of standardized criteria or a transparent assessment methodology will result in arbitrary or inconsistent designations, which will prevent the establishment of a fair and level playing field for companies and impede fair competition for European retailers.

The EU General Court will now consider the case, and a decision is expected within the next two years. In the meantime, Zalando must adhere to the DSA’s stricter regulations.