Overview

• The German Cabinet has adopted an E-Commerce Action Plan to address regulatory gaps involving platforms like Temu and Shein.
• Key measures include enhanced powers for customs and market regulators, as well as coordinated inspections to ensure compliance with EU laws.
• The plan supports removing the €150 duty-free limit on imports, which experts say is exploited through misdeclared shipments.
• Platforms will face greater accountability for the safety and legality of goods sold, with the EU's Digital Services Act enabling significant fines for violations.
• The initiative has been welcomed by trade groups but raises questions about enforcement and its impact on domestic businesses.