The European Union (EU) has initiated an investigation against Shein, following the discovery that the retailer's catalog included illegal items such as weapons and sex dolls that have a child-like appearance. The investigation, announced on Tuesday, is primarily based on the suspicion of multiple infringements related to the sale of these products. It highlights significant concerns regarding the nature of content that is promoted and sold on the platform, which was founded in China and is currently headquartered in Singapore.

In addition to the illegal sales, the EU is examining addictive aspects of Shein's platform and the lack of transparency regarding its recommendation algorithm, which could lead to further complications for the company under European law. If the investigation confirms these violations, Shein could face severe penalties amounting to as much as 6% of its annual revenue. The European Digital Services Act (DSA) imposes stringent requirements on online platforms, particularly larger ones like Shein, to take measures that protect users from dangerous and illegal content.

The implications of this investigation extend beyond Shein; it underscores the EU's commitment to enforcing the DSA and holding online platforms accountable for the safety of their offerings. As the EU looks to bolster consumer protection and regulate e-commerce more effectively, the outcome of this investigation may set a precedent for other online retailers. This situation could potentially reshape the landscape of e-commerce regulation in Europe, emphasizing the EU's proactive stance in combating illegal and harmful content in digital markets.