Zalando lodges Digital Services Act legal challenge

The company was one of 19 businesses designated by the European Commission as a VLOP back in April, with new rules specific to VLOPs set to take effect from 25 August this year.

However, on Tuesday, Zalando said it had filed a legal challenge at the Court of Justice of the European Union (CJEU) contesting its designation as a VLOP. Among other things, it criticised the basis on which businesses are assessed as whether they qualify as VLOPs for the purposes of the DSA. Zalando chief executive Robert Gentz told the Financial Times that the company had been “designated on the basis of visitors” while the other businesses designated as VLOPs had been “designated on the basis of users”. He described that as “unequal treatment”.

In a statement, Zalando said: “Zalando argues that the European Commission did not take into account the majority retail nature of its business model and that it does not present a ‘systemic risk’ of disseminating harmful or illegal content from third parties. On the contrary, Zalando offers its customers a safe online environment with highly curated products from leading brands and established partners that are thoroughly vetted.”

“The company also contests the unequal treatment resulting from the absence of a clear and consistent methodology to assess whether a company is a ‘Very Large Online Platform’,” it said.