(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, Apple, 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.
(Reporting by Deborah Sophia in Bengaluru; Editing by Krishna Chandra Eluri)
