Zalando Faces Legal Setback in EU Content Regulations Challenge

Zalando lost its legal challenge against the EU's designation of its platform as a very large online platform under the Digital Services Act. The European General Court ruled against Zalando, dismissing its arguments, and highlighting efforts to enforce stricter content regulations on online platforms.

The European Union's tech regulatory framework received a boost following the recent General Court decision against Zalando, Europe's largest online fashion retailer. The ruling dismissed Zalando's challenge to its classification as a very large online platform under the Digital Services Act (DSA).

Zalando, which operates both an online shop and marketplace, contended that its business model distinguished it from tech behemoths like Google and Meta. However, the court disagreed, maintaining that Zalando could not demonstrate a clear distinction in user exposure to partner-provided content versus its own.

This legal case, T-348/23 - Zalando v Commission, marks the first challenge under the DSA by a company. Zalando may appeal on legal grounds to the Court of Justice of the European Union, indicating ongoing tensions between major platforms and EU regulators over content regulation.

(With inputs from agencies.)