Zalando escalates DSA dispute to EU Court of Justice

Zalando
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Zalando has taken its dispute with Brussels over digital content obligations to the Court of Justice of the European Union (CJEU), urging the EU to overturn its Very Large Online Platform (VLOP) label.

The online fashion and lifestyle platform has taken the issue to the court, arguing that a lower court misinterpreted key elements of the Digital Services Act (DSA) when it dismissed the retailer’s original challenge, as first reported in Reuters.

The move follows the EU’s decision to classify the business as a VLOP under the Digital Services Act (DSA). This decision places Zalando in the same regulatory tier as major tech players such as Google and Meta, and subjects it to enhanced compliance requirements.

However, Zalando continues to argue that its model is distinct from other platforms because it combines sales of its own products with those of third-party partners.

In its appeal, the company said the General Court had adopted an overly broad view of what constitutes third-party content, a reading it claims could sweep a wide range of sectors, from media to supermarkets, into the scope of the DSA.

It is understood the retailer is also contesting the method used to calculate the number of “active recipients”, a metric which determines whether a platform meets the threshold for VLOP status.

Zalando noted that this approach effectively shifts the burden of proof onto companies to demonstrate they should not be designated.

Looking ahead, the CJEU will now consider whether the General Court erred in its interpretation of the legislation and associated thresholds.

The new court challenge follows the Berlin based fashion giant in August raising its full-year guidance after completing its acquisition of rival fashion retailer About You and posting a rise in profit in the second quarter.

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Zalando escalates DSA dispute to EU Court of Justice

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Zalando has taken its dispute with Brussels over digital content obligations to the Court of Justice of the European Union (CJEU), urging the EU to overturn its Very Large Online Platform (VLOP) label.

The online fashion and lifestyle platform has taken the issue to the court, arguing that a lower court misinterpreted key elements of the Digital Services Act (DSA) when it dismissed the retailer’s original challenge, as first reported in Reuters.

The move follows the EU’s decision to classify the business as a VLOP under the Digital Services Act (DSA). This decision places Zalando in the same regulatory tier as major tech players such as Google and Meta, and subjects it to enhanced compliance requirements.

However, Zalando continues to argue that its model is distinct from other platforms because it combines sales of its own products with those of third-party partners.

In its appeal, the company said the General Court had adopted an overly broad view of what constitutes third-party content, a reading it claims could sweep a wide range of sectors, from media to supermarkets, into the scope of the DSA.

It is understood the retailer is also contesting the method used to calculate the number of “active recipients”, a metric which determines whether a platform meets the threshold for VLOP status.

Zalando noted that this approach effectively shifts the burden of proof onto companies to demonstrate they should not be designated.

Looking ahead, the CJEU will now consider whether the General Court erred in its interpretation of the legislation and associated thresholds.

The new court challenge follows the Berlin based fashion giant in August raising its full-year guidance after completing its acquisition of rival fashion retailer About You and posting a rise in profit in the second quarter.

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