Zalando, Europe’s largest online fashion retailer, lost out yesterday against EU online content rules, in what is a win for EU tech regulator efforts to make online platforms do more to address posts containing illegal and harmful content.
Zalando had sued the European Commission after being designated as a very large online platform (VLOP) under the Digital Services Act (DSA). Being placed in the same category as Alphabet’s Google and Meta Platforms made the fashion retailer subject to onerous DSA requirements.
A Commission spokesperson said the ruling sent a message to U.S. critics, and that the judgment confirmed the non-discriminatory nature of the DSA provisions since they apply “to all online platforms in the EU, including European ones like Zalando.”
Some U.S. politicians and companies had cited the DSA regulations as examples of online censorship. Zalando maintained that its situation was different from that of other online giants since it is a hybrid service, selling not just its own products but also those provided by partners.
The General Court, which is based in Luxembourg, dismissed Zalando’s appeal against its designation “as a very large online platform,” according to the tribunal’s verdict.
Zalando’s challenge was the first by a company against the Digital Services Act. The company stated that it would appeal the ruling to the Court of Justice of the European Union, the European Union’s highest court.
Next week, the General Court is to rule on challenges by Meta and TikTok against fees aimed at covering the Commission’s cost of monitoring their compliance with the DSA.
