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    Zalando Faces New Digital Regulations After EU Court Ruling

    Image Source: Unsplash

    The European Digital Services Act (DSA) is reshaping the landscape for online retailers, putting significant emphasis on consumer protection and the regulation of content. Recently, a pivotal ruling from the EU General Court emphasizes Zalando’s obligations under this legislation.

    DSA Compliance and Legislative Framework

    On September 3, 2025, the EU General Court, which acts as the first instance of the Court of Justice of the European Union (CJEU), upheld the European Commission’s assessment that Zalando qualifies as a major online platform and must adhere to the DSA. This ruling highlights a shift towards stricter regulatory measures designed to protect consumers while also preventing the dissemination of illegal content across digital platforms.

    Ruling Against Zalando

    Zalando sought to challenge the European Commission’s classification, claiming a smaller number of active users. However, the court firmly dismissed this appeal, reinforcing the Commission’s assessment that Zalando’s average monthly active users in the EU exceeds 83 million—a figure that significantly surpasses the 45 million threshold defined by the DSA. This classification not only mandates tighter regulations but also signifies a broader approach to governance in the digital retail sector.

    Understanding the Significance of Active Users

    In determining Zalando’s classification, it was crucial to consider its active recipients, which includes users exposed to products listed by third-party sellers through its “Partner Program.” The court sided with the Commission’s evaluation that Zalando’s broader engagement with consumers through these external sellers warrants its classification as a large platform.

    Legal Principles and Court’s Position

    Zalando’s attempts to contest the legality of the DSA, alleging it violates principles of legal certainty, equal treatment, and proportionality, were also rejected. The judgment makes it clear that platforms facilitating transactions for large audiences, especially in the realm of high-risk products, carry greater responsibility under the DSA. The ruling outlines a critical understanding that platforms like Zalando, due to their user base, can inadvertently enable the marketing of dangerous or illegal products, hence the need for more stringent oversight.

    The Path Forward for Online Retailers

    This landmark ruling serves as an important reminder for online retailers, particularly those with substantial consumer reach. As digital environments evolve, so too does the regulatory framework governing them. The implications of such rulings extend beyond Zalando; they affect numerous platforms striving to navigate the complexities of digital commerce within a regulated landscape.

    The comprehensive nature of the DSA marks a notable push by EU lawmakers to safeguard consumers and enhance accountability among leading online platforms. Companies must now strategize not only around compliance but also around their operational integrity in providing safe and responsible commerce.

    In conclusion, Zalando’s case signals a significant turning point in how digital platforms operate within the EU. As the DSA implementation progresses, eCommerce strategies must evolve to prioritize compliance and consumer protection in an increasingly digital world.

    Image Source: Unsplash

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