Key Facts
• September 3, 2025: Zalando loses EU court case on content regulation.
• EU’s Digital Services Act (DSA) designates Zalando as a Very Large Online Platform (VLOP).
• VLOP classification imposes stricter content moderation requirements on platforms.
• Zalando argued its hybrid business model differs from other major online platforms.
• EU General Court in Luxembourg rejected Zalando’s appeal.
• Zalando plans to appeal to the European Court of Justice.
• EU Commission emphasized DSA’s non-discriminatory application to all platforms.
• DSA aims to combat illegal and harmful content across online platforms.
• U.S. critics, including politicians and companies, view DSA as online censorship.
• Zalando claims its model does not pose systemic risks of harmful content.
Summary
Zalando, a German fashion retailer, lost its legal challenge against the European Union’s designation of the company as a Very Large Online Platform (VLOP) under the Digital Services Act (DSA). The EU General Court ruled against Zalando’s claim that its hybrid business model, which includes selling its own products and those from partner companies, differs from other major platforms like Google and Meta. The VLOP classification subjects Zalando to stricter content moderation requirements aimed at combating illegal and harmful content. The European Commission welcomed the ruling, stating it reinforces the DSA’s non-discriminatory application across all platforms. Zalando expressed disappointment and announced plans to appeal to the European Court of Justice, arguing its business model does not create systemic risks for spreading harmful content. The case highlights ongoing tensions between the EU’s regulatory approach and criticism from U.S. stakeholders, who view the DSA as a form of online censorship.
