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EU Court Upholds Zalando’s ‘Very Large Online Platform’ Status Under Digital Services Act

The judgment finds that third‑party sales on Zalando’s partner program qualify the site as a platform subject to the DSA’s toughest rules.

Overview

  • Europe’s General Court in Luxembourg rejected Zalando’s challenge to its EU designation, confirming the company must comply with enhanced DSA obligations.
  • The EU’s 45 million monthly active‑user threshold applies, and the Commission’s estimate of about 83 million users for Zalando was deemed reasonable.
  • Judges said Zalando is not a platform for its own retail sales but is one for its partner program, and the firm could not reliably separate users exposed to third‑party content.
  • Very large platforms must rapidly remove illegal content, disclose parts of their recommendation and ad algorithms, conduct annual risk assessments, and face fines for breaches.
  • Zalando can appeal to the Court of Justice of the European Union, and the company said it was disappointed with the decision, noting roughly one third of its business involves partner sellers.