Digital Services Act: Zalando must observe stricter rules for online services

The EU classification of the Zalando online shop as a “very large online platform” and the associated stricter rules for the company are according to a judgment of the EU court. The court dismissed a lawsuit by the Berlin Dax Group against the corresponding decision of the EU Commission under the Law on Digital Services (Digital Services Act-DSA), as the judges in Luxembourg announced.

The Commission was therefore allowed to assume that Zalando exceeds the threshold of 45 million active users relevant to such a classification. Against the judgment can be lodged at the Court of Justice of the European Union.

Among other things, the DSA should ensure that platforms quickly remove illegal content from third parties on their pages. In April 2023, the EU Commission classified Zalando as a so-called very large online platform within the meaning of the DSA and had assumed 83 million active users in the EU a month. Strict specifications apply to very large platforms and search engines. You have to submit annual risk reviews and share data with authorities and researchers.

Crucial point: Hybrid’s business model from Zalando

The company, on the other hand, had argued that on the one hand it was not a classic platform because it provides its own content and, in addition, the products of third parties are practically adopted after a precise exam. In addition, the number of users had been misinterpreted. Zalando’s business model is hybrid: on the one hand, own products are sold, and on the other hand as part of a so -called partner program, the products of third parties.

The EU court ruled that Zalando was a platform according to the DSA in terms of third-party sales. Zalando was unable to distinguish who of the more than 83 million people who had used the entire shop were exposed to the content from the partner program. Therefore, all users were allowed to be counted together.