Online retailer Zalando faces tougher guidelines for its digital services.

Zalando is subject to more stringent guidelines for its online services - Online retailer Zalando faces tighter regulations for its digital offerings

The European Union (EU) has designated online retail giant Zalando as a "very large online platform" under the Digital Services Act (DSA), a decision that was upheld by the EU Court in April 2023.

Based in Luxembourg, Zalando operates a hybrid business model, selling both its own products and those from third-party partners. The EU Commission's classification was challenged by Zalando, but the lawsuit was dismissed.

With an estimated 83 million active users in the EU per month, Zalando falls under the category of "very large platforms and search engines" subject to particularly strict requirements under the DSA. These requirements include submitting annual risk assessments and sharing data with authorities and researchers.

The EU Court's decision counted all users of Zalando together, regardless of exposure to the partner program content. However, Zalando maintains that the court did not adequately consider the curated and high-quality nature of products from established brand partners.

Despite this, the EU Court deemed the classification of Zalando as lawful. In response, Zalando has announced it will appeal the decision to the Court of Justice of the European Union.

The DSA aims to ensure platforms quickly remove illegal content from third parties on their sites. As a "very large online platform," Zalando will be subject to these stringent measures.

It's important to note that this classification does not pertain to Zalando's sale of its own products. Additionally, no other specific platforms or companies were mentioned in the paragraph.

Zalando continues to believe that its business model does not pose a systemic risk for the spread of harmful or illegal content from third parties. The company's appeal to the Court of Justice of the European Union is ongoing.