bbieron@platformeconomyinsights.com

French Retailers and Government Backers Resisting Online Marketplaces

Feb 21, 2026

Report from Reuters

In Brief – France’s Minister of Small and Medium Businesses says Shein and other online retail platforms will face a “year of resistance” from traditional storefront retailers and their backers in the government. Serge Papin argued that retail platforms pose unfair competition to French store chains, saying that stores are responsible for the goods they sell on their shelves, while online platforms are not. The comments came as a Paris court is set to hear an appeal from the government to a December court ruling rejecting a Paris prosecutor’s request to shut down Shein’s website for three months. Minister Papin said breaches of consumer rules on Shein were “systemic”, that he was confident the court will agree that the platform presented a “disturbance to public order”, and that French lawmakers are preparing a bill that would allow the government to suspend online platforms without the need for court approval.

Context – When Shein opened its first physical shop in Europe in a Paris department store in early November, it drew shoppers, protestors, and swift government action.  The French Finance Ministry moved to block Shein’s website but suspended that effort when third-party sales were stopped by Shein. The Paris public prosecutor’s office continued pursuing a three-month suspension of the full website, but a Paris court rejected that motion. The CEO of a French grocery store chain has called for Shein and Temu to be banned in Europe entirely for two years while new rules to regulate them are crafted, and a coalition of French retailers and brand owners have filed a €3 billion class action lawsuit accusing the Shein of unfair competition. Consumer advocates and traditional retailers in Europe have long complained about the sale of unsafe products on digital marketplace, with Temu and Shein now joining Amazon and AliExpress as top targets. The EU Digital Services Act (DSA) regulates how online marketplaces deal with illegal and objectionable products and content and the European Commission has opened investigations of AliExpress and Temu and face calls to add Shein.

View By Monthly
Latest Blog
Brazil Orders Grok to Stop Sexualized Images

Report from DigWatch In Brief – Brazil has ordered X to stop AI chatbot Grok from generating sexualized images, adding to the global regulatory pressure on Elon Musk’s social media platform and AI chatbot. The directive, issued by Brazil’s National Data Protection...

India Adds Deepfakes to Tightened Social Media Takedown Regime

Report from MediaNews4U In Brief – India has amended its rules requiring social media platforms such as Meta, YouTube and X to remove unlawful material, adding AI-generated “deepfakes” to the regime. The new rules, which go into effect on February 20, bring...

Federal Jury Finds Uber Financially Liable for Driver Sexual Assault

Report from Bloomberg In Brief – A federal court jury in Arizona has ordered Uber to pay $8.5 million in damages to a young woman who was allegedly raped by her driver in 2023. The decision marks the first time Uber, which has been fighting such claims for a decade,...

EU Commission Directs Google to Play Nice with Chatbot Competitors

Report from Courthouse News In Brief – The European Commission has announced two “specification proceedings” to direct Google in setting policies related to third-party AI chatbot competitors that comply with its Digital Markets Act (DMA) obligations. One process...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required