👓E-commerce and The AI Act: The EU Bares Its Teeth

Bonjour ☕

In this edition of La tech est politique, we examine the e-commerce issues that will drive many discussions and the significance of the first AI Act requirements that have been applicable since 2 February.

Reading time: 10 minutes (1,555 words)

Hot Potato, Beware: Fast Fashion, a Fleeting Trend and a Lasting Threat

On 5 February, the Commission presented its 'toolbox' to enhance control over e-commerce imports from third countries, primarily targeting Chinese 'fast fashion' giants. This initiative is part of a broader strategy to regulate online commerce and safeguard the single market, consolidating actions already taken against AliExpress, Shein, and Temu.

Background. The issue of competition from fast fashion platforms became a major topic in France with the involvement of FEVAD in early 2024. The hesitance of the Ministry of Economy and its then-incumbent, Bruno Le Maire, did not deter French fashion and textile representatives from going European. Preparatory work on updating the European directive on product liability highlighted the inadequacy of the current regulatory framework in addressing the challenges posed by these platforms.

The complexity of the matter also lies in its multidimensional nature:

• The VLOP (Very Large Online Platform) status of these platforms under the DSA

• Shared supervision between three European Commissioners: Virkkunen (lead), McGrath (consumer protection) and Šefčovič (customs)

• Implications for international trade relations, particularly with China

Why It Matters. This issue goes to the core of the European digital economic model and highlights the challenges of regulating online commerce in the era of global platforms. The current situation, in which giants like Temu and Shein can evade customs rules while profiting from large public subsidies, jeopardises the sustainability of European businesses and the social and environmental standards that the EU aims to uphold. The stakes are twofold: to maintain a fair commercial ecosystem where European actors can continue to innovate and grow; to avoid rising trade tensions (especially with China) that could have impacts well beyond the e-commerce sector.