The European Commission has launched formal proceedings against fashion giant Shein under the Digital Services Act, targeting alleged addictive platform design, opaque recommendations, and the sale of illegal products.

On 17 February 2026, the European Commission opened formal proceedings against fashion website Shein under the Digital Services Act (the “DSA”), focusing on the platform’s alleged addictive design, alleged lack of transparency of its recommender systems, and the alleged sale of illegal products, including content which could constitute child sexual abuse material.

In April 2024, Shein was designated a Very Large Online Platform (“VLOP”) under the DSA, having exceeded the threshold of more than 45 million monthly users in the EU. VLOPs are subject to the DSA’s most onerous obligations, including requirements to identify and mitigate systemic risks, implement enhanced consumer protection measures, and ensure improved transparency and accountability.

Ireland is the country where Shein has established its European base, and Coimisiún na Méan, the Irish media regulator which also serves as Ireland’s Digital Services Coordinator, will assist the Commission in its work. It should be noted that, under the DSA framework, the European Commission retains direct supervisory competence over VLOPs and is conducting these proceedings in that capacity.

Investigation in More Depth

Sale of Illegal Products – The investigation will examine the systems Shein has in place to limit the sale of illegal products within the EU, including content which could constitute child sexual abuse material, such as child-like sex dolls. The move under the DSA followed France’s urging of the Commission in November 2025 to crack down on the sale of such products on Shein’s platform. Shein has since ceased the sale of all sex dolls worldwide. Reports also indicate that the Commission is examining the availability of clothes, cosmetics and electronic products that may not comply with EU law.

Addictive Design – The Commission will examine the risks linked to the alleged addictive design of Shein’s service, including the awarding of points or rewards for user engagement, as well as the systems Shein has in place to mitigate such risks. Addictive design features of this nature are capable of having a negative impact on users’ wellbeing and consumer protection online. Regulators are particularly concerned about the potential for such features to encourage overconsumption and to have a disproportionate impact on younger users.

Recommender System Transparency – The third strand of the investigation concerns how Shein recommends products and content to users. Under the DSA, platforms must clearly explain the main parameters behind their recommender systems and offer users at least one easily accessible option that is not based on profiling. The Commission will assess whether Shein’s current practices satisfy these obligations.

How the Current Investigation is Going

As of April 2026, the Commission will carry out an in-depth investigation which may include further requests for information and monitoring of the service offered by Shein. There is no fixed deadline under the DSA for concluding proceedings. No findings or penalties have been issued at this stage, and it is important to note that the formal opening of proceedings does not prejudge the final outcome; rather, it marks the beginning of a rigorous, evidence-based process to determine compliance.

What Can Happen if Shein is Found to have Breached its Obligations under the DSA

Should the Commission ultimately determine that Shein has breached its obligations under the DSA, the following consequences may follow:

Financial penalties Article 74 of the DSA provides for the imposition of fines not exceeding 6% of the provider’s total worldwide annual turnover. In Shein’s case, the fine could potentially amount to hundreds of millions of Euros.

Remedial orders – Under Article 51 of the DSA, authorities may order the cessation of infringements. This means that if an infringement is found, Shein could be required to fundamentally alter its business model. Under Article 51 of the DSA, authorities also have the power to impose interim measures. This could include orders to overhaul platform design features considered to exploit users’ behavioural tendencies, and to provide clear and accessible information regarding its recommender systems.