Brief

Commission opens formal proceedings against Shein under the Digital Services Act

Paul Delor

Paul Delor

— 3 min read

Today in Brief

  • The Commission opens a formal investigation into Shein under the Digital Services Act, targeting addictive design, opaque recommender systems, and the sale of illegal products including child sexual abuse material.
  • The Commission proposes the signing of the EU-UK agreement on Gibraltar, which would remove all physical barriers between Gibraltar and Spain while safeguarding Schengen and the single market.
  • Commissioner LAHBIB visits the DRC, Burundi and Rwanda as the EU mobilises €81.2 million in humanitarian aid for the Great Lakes region.
  • At ECOFIN, Commissioner DOMBROVSKIS updates member states on the €90 billion Ukraine Support Loan, a new sanctions package against Russia, and the state of play of SAFE defence loans.

Digital

The Commission opens formal proceedings against Shein under the Digital Services Act.

The European Commission has launched a formal investigation into Shein under the Digital Services Act, focusing on three areas: the sale of illegal products, including child sexual abuse material such as child-like sex dolls; addictive design features, including reward and engagement systems that may harm user wellbeing; and the transparency of recommender systems, which under the DSA must disclose their main parameters and offer users at least one option not based on profiling. The Commission sent three requests for information to Shein in June 2024, February 2025, and November 2025 before opening proceedings. Coimisiún na Meán, Ireland's Digital Services Coordinator and the authority in Shein's country of EU establishment, will be associated with the investigation. The opening of proceedings does not prejudge the outcome but empowers the Commission to take interim measures, issue a non-compliance decision, or accept commitments from the company. The DSA sets no fixed deadline for concluding an investigation.

External Relations

The Commission proposes the signing of the EU-UK agreement on Gibraltar, completing the post-Brexit legal framework for the region.

The European Commission has adopted proposals for the signature, provisional application, and conclusion of an agreement between the EU and the United Kingdom on Gibraltar. Gibraltar was excluded from the scope of the Trade and Cooperation Agreement signed in 2020. The new deal aims to remove all physical barriers on the movement of persons and goods between Gibraltar and Spain, while fully protecting Schengen, the single market, and the customs union. Around 15,000 people cross the Gibraltar-Spain border daily. The proposals will now go to the Council, and the European Parliament will need to give its consent. The political agreement on key principles was reached in June 2025 between Commissioner M. Maroš ŠEFČOVIČ, Spanish Foreign Minister M. José Manuel ALBARES, UK Foreign Secretary M. David LAMMY, and Gibraltar Chief Minister M. PICARDO. The legal text was finalised in December.

"With 15,000 people crossing daily between Gibraltar and Spain, this is about legal certainty, confidence for businesses and people, as well as a cooperative future that reinforces our mutual relationship."

M. Maroš ŠEFČOVIČ, Commissioner for Trade and Economic Security

Humanitarian Affairs

The EU mobilises €81.2 million in humanitarian aid for the Great Lakes as Commissioner LAHBIB visits the region.

Commissioner Mme Hadja LAHBIB is visiting the Democratic Republic of Congo, Burundi and Rwanda to assess humanitarian needs on the ground and advocate for humanitarian access with all parties to the conflict in eastern DRC. The visit coincides with the announcement of €81.2 million in EU humanitarian aid for the region: €68 million for the DRC, covering food assistance, emergency health and nutrition care, water and sanitation, shelter, and protection services for survivors of violence; and €13.2 million for the regional refugee response and disaster preparedness across the Great Lakes. The DRC is home to one of the world's most severe humanitarian crises, with more than 21 million people requiring assistance and nearly 28 million facing acute food insecurity. The recent escalation in eastern DRC has also pushed large numbers of Congolese refugees into Burundi, adding pressure to already stretched services there.

"Civilians in eastern DR Congo are trapped between bullets and hunger. Aid workers must be able to reach people safely, quickly and without obstacles. International humanitarian law is not a buffet table. You don't pick and choose."

Mme Hadja LAHBIB, Commissioner for Equality, Preparedness and Crisis Management

Economy & Finance

At ECOFIN, the Commission updates member states on Ukraine financing, a new sanctions package, and SAFE defence loans.

Commissioner M. Valdis DOMBROVSKIS briefed the Economic and Financial Affairs Council on several fronts. On Ukraine, he outlined progress on the €90 billion Ukraine Support Loan and called on member states to conclude the legislative process next week, ahead of a swift disbursement. He also noted an upcoming IMF board meeting to approve a new programme for Ukraine. On sanctions, the Commission has proposed a 20th package of measures against Russia, targeting energy, financial services, and trade, and called on member states to endorse it quickly. On the Recovery and Resilience Facility, total disbursements now stand at €394 billion, with the August deadline approaching. Twenty-five member states have streamlined their plans, reducing outstanding milestones and targets by 20%. On defence financing, the Commission has positively assessed the investment plans of 16 member states under the SAFE instrument, with nearly €113 billion in loans allocated. Assessments of the remaining three plans are due shortly. The Council also activated the national escape clause for Austria to facilitate its transition to higher defence spending.

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