Zalando Faces Legal Setback Against EU's Digital Services Act

Zalando, Europe's leading online fashion retailer, suffered a legal defeat on Wednesday in a case against the European Union's stringent online content rules. This verdict reinforces the EU's stance on compelling large online platforms to take greater responsibility in managing illegal and harmful content.

The legal designation of Zalando as a 'very large online platform' (VLOP) under the Digital Services Act aligns it with digital giants like Alphabet's Google and Meta and subjects it to strict requirements. Despite opposition from U.S. political figures accusing the Act of being a form of online censorship, the European Commission maintains it ensures a safer internet environment.

In a statement expressing disappointment, Zalando stated its model does not pose systemic risks typical of VLOPs and plans to appeal the court's ruling. The retailer challenges the court's user base assessment and insists the gross sales value should reflect its user activity, not exceeding 30 million, contrary to the court's ruling of 83 million.

(With inputs from agencies.)