Zalando sues the EC for its designation as a “very large online platform”

Zalando has filed a lawsuit against the European Commission (EC) for imposing the same rules on him as on Google, Amazon, Apple or Metain relation to the new Digital Services Act (DSA)and designate him as “very large online platform” (VLOP) for having more than 45 million monthly users. Specifically, in a release, Zalando alleges that the EC did not take into account the majority retail nature of its business model and that it does not present a «systemic risk» Dissemination of harmful or illegal content from third parties.

On the contrary, Zalando states that it offers its clients «a secure online environment with highly selected products from leading brands and established partners that are thoroughly vetted«. The company is also contesting the deal.”unequal» resulting from the absence of a clear and consistent methodology to assess whether a company is a «Very large online platform«.

“The DSA is correct, but we are baffled that we have been designated as a large online platform alongside those 18 other companies.”, he explains in a publication on your LinkedIn profile Robert Gentz, CEO and co-founder of Zalando.

According to him Financial Timesthe German firm argues that, although its website receives more than 83 million visits per month, visitors likely to buy third-party products only amount to 31 million, a figure below the 45 million required by the Commission to qualify for a company within the application framework of the DSA. “Everyone else has been designated based on users, but we are designated based on visitors. That is unequal treatment.”manifest Gentz, pointing out that Brussels also misinterpreted his company’s hybrid model. “More than 60% of sales derive from products sold directly to online shoppers, while the rest less than 40% comes from other suppliers through the Zalando site.”, he reiterates.

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Europe needs the right regulations that ensure fair competition and give companies like Zalando the ability to keep innovating and giving customers the best possible deal, rather than dealing with regulatory requirements that shouldn’t apply to them.. With our claim, our aim is to support an increasingly vibrant and diverse European digital ecosystem rather than make it more difficult for European retailers to compete e-commerce”, adds the CEO.

Not yet in force

In April 2022, the European Union approved the new DSA that it branded as «a world first in the field of digital regulation«. As explained by the European Council at the time, “the new Law will establish new global standards and citizens will have better control over how their data is used by online platforms and large technology companies«.

A year later, in April of this year, Brussels published a list of technology companies that had to adapt to the new law before next September and warned that the companies that appear on the list will have to provide detailed information about the design, operation and impact of their algorithms, as well as about the measures they adopt to mitigate the risks identified. They will also have to provide access to their data and interfaces to independent researchers and competent authorities, and they will also have to establish effective notification and removal mechanisms for illegal or harmful content, as well as recourse for affected users. These included companies such as Facebook, Twitter, Google, Apple or Bing (Microsoft).

DSA not yet entered into force, since it is pending the approval of the European Parliament and the Council of the EU. Not expected to apply until early 2024.

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