What: Eight European countries, led by France, are urging the EU to intensify action against platforms like Shein and Temu due to concerns over unfair competition and systemic risks.

Why it is important: This initiative reflects a broader regulatory crackdown on fast-fashion e-commerce, reinforcing trends seen in recent EU policy changes.

Eight European countries, spearheaded by France, have formally called on the European Commission to take stronger, coordinated action against the perceived excesses of e-commerce platforms such as Shein and Temu. Their concerns center on unfair competition, the sale of illicit goods, and the systemic risks these platforms pose to both consumers and local businesses. The letter urges the enforcement of existing regulations like the Digital Services Act and advocates for new measures, including a European tax on low-value parcels and enhanced customs controls. This initiative follows recent unsuccessful attempts by France to suspend Shein after the discovery of illicit products, as well as ongoing legal proceedings and industry-led actions targeting unfair competition. The move reflects a broader shift in the EU’s regulatory landscape, with increasing scrutiny and legal action against fast-fashion and cross-border e-commerce platforms. These developments underscore the growing determination among European governments to protect local retail ecosystems and ensure a level playing field in the face of disruptive global players.

IADS Notes: The coordinated call for EU action in December 2025 builds on a year of intensifying regulatory and legal measures. In February 2025, the EU introduced customs reforms making platforms like Shein and Temu directly liable for unsafe or illegal goods and removing duty exemptions for low-value imports (Financial Times, February 2025). July 2025 saw the European Commission accuse Temu of breaching the Digital Services Act (Financial Times, July 2025). In May 2025, a €2 fee per low-value parcel was introduced to address the surge of Chinese imports (Inside Retail, May 2025). In November 2025, France halted Shein’s suspension proceedings after illicit items were withdrawn (BoF, November 2025), and French brands launched legal action against Shein for unfair competition (Fashion Network, November 2025). These events collectively illustrate the mounting regulatory, legal, and market pressures reshaping European retail.

Eight European countries urge the EU to strengthen itself against platforms like Shein and Temu