Symbolic depiction of the legal battle between France the EU and the digital platform Shein
Europe’s Dual Fight Against Unfair Competition
Across Europe policymakers business owners and consumers are watching a complex two front battle unfold against unfair competition. One side of this struggle is taking place in Brussels where the December 12 ECOFIN meeting is expected to clarify how far and how fast the EU will move to protect the single market. The other is unfolding in Paris where France is pursuing a high stakes legal challenge against Shein a case viewed as a major test for every EU member state.
French authorities are relying on an extensive legal framework that allows them to seek a historic ruling a 3 month suspension of Shein’s ecommerce operations in the country. This unprecedented step has sparked intense interest across Europe where concerns have escalated about the risks posed by unchecked parallel trade.
The EU’s Determination Put to the Test
The ECOFIN meeting carries particular weight as member states consider how to reinforce fair competition across the EU. Last month the Council’s decision to bring forward to 2026 the elimination of duty exemptions for parcels valued under 150 euros was hailed as a significant step. It signaled for the first time the EU’s intention to confront systemic market distortions caused by low value imports.
However several critical questions remain open and ECOFIN must resolve them to ensure consistent application across the single market.
The exact implementation date in 2026 for abolishing duty exemptions on parcels below 150 euros
The structure of a transitional approach for duty from the first euro until the new customs system launches in 2028
The timing calculation and responsible party for administrative fees on small parcels
The handling of platforms already operating warehouses inside the EU
The minimum enforcement standards against under valuation and misleading declarations on imported goods
Symbolic representation of an EU economic meeting and institutional setting
Awaiting ECOFIN’s Crucial Decisions
Both ECOFIN’s announcements and the upcoming French court ruling expected before Christmas will shape the future of the EU single market. ESEE has been vocal in pushing for an EU level mechanism that would allow the European Commission in exceptional circumstances to restrict or suspend market access for third country ecommerce platforms. According to ESEE Greece too could pursue a targeted national approach inspired by recent French actions especially to safeguard consumer safety and fair competition.
The Impact of Unchecked Parallel Trade
Kostis Mousouroulis ESEE’s Head of International Relations warned that large non EU ecommerce platforms are not merely providing cheaper options but paving the way for an uncontrolled parallel trade system. This he argues erodes small businesses public revenue and consumer safety. He highlighted the surge in low value parcels from third countries stressing that they enter the EU under far more lenient rules than physical shops face. The French example he said shows why the EU needs a unified framework and why ECOFIN must finalize customs reforms abolish the de minimis exemption strengthen customs authorities and ensure platforms bear full responsibility as importers.
France’s Regulatory Offensive
Valia Aranitou Scientific Director of the ESEE Institute outlined the scale of measures undertaken by France during a recent EuroCommerce session. France has used its full legal arsenal to bring Shein to court identifying systematic violations of both national and EU laws. The platform has already faced major penalties including a 150 million euro fine for data protection breaches related to illegal cookie use and a 40 million euro fine for misleading commercial practices.
The consequences for Shein in France were immediate. Media coverage in November led to a 70 percent drop in sales and pushed the platform down to 46th place among online retailers. French authorities have not limited their investigations to Shein alone several other major non EU platforms are now also under scrutiny.
Illustration of EU efforts to regulate international digital commerce platforms
