Zalando Fights EU Digital Regulations in Major Court Case

Post by : Bianca Suleiman

The largest online fashion retailer in Europe, Zalando, has intensified its legal confrontation with the European Union regarding digital regulations by approaching the Court of Justice of the European Union (CJEU). The company is disputing its designation as a “very large online platform” (VLOP) under the Digital Services Act (DSA), which imposes stringent regulatory responsibilities.

Earlier this year, the General Court in Luxembourg dismissed Zalando's first lawsuit, asserting that its hybrid business model—selling both its own products and those of partners—does not exempt it from the rigorous rules applicable to major tech enterprises like Google and Meta.

In its ongoing appeal, Zalando contends that the lower court misunderstood the definition of third-party content, a decision that could have widespread implications for countless online services throughout Europe. The company posits that this broad interpretation of the law may inadvertently place diverse industries, including media, tourism, and supermarkets, under the DSA's stringent compliance demands.

Moreover, Zalando argues that the General Court has flipped the burden of proof, asserting that instead of the EU needing to justify the company’s VLOP classification, Zalando must demonstrate why it does not belong in this category. The fashion giant also challenges the methodology employed to assess its active service recipients—a critical factor in determining VLOP status.

The ruling in this case has the potential to establish a significant precedent for the digital economy in Europe, shaping the regulatory landscape for hybrid platforms and how businesses adapt to the looming compliance pressures under the DSA.