The European Commission today launched a wide-ranging investigation into the Chinese online sales platform Shane, after the site offered child-like sex dolls and weapons.
The Shane platform, founded in China in 2012 but now based in Singapore, has come under fire from regulators across Europe, particularly in France, after questionable products were discovered on its offering in November.
Announcing its first formal investigation into the company, the Commission said it was examining whether Shane breached the Digital Services Act, an EU law that regulates online platforms. Investigations can take years, but any violations can lead to fines of up to six percent of a company's annual global revenue.
The EU executive suspects the platform broke the law by failing to adequately assess and mitigate the risks of selling illegal goods, a senior Commission official told a press briefing. Such products include unsafe toys and cosmetics.
The commission is also examining the potentially addictive design of the Shane platform, in particular the reward points programs and the “gamification” of shopping, which could harm consumers’ mental and physical well-being. The oversight also includes the product recommendation system, as well as the level of transparency of the platform.
A company spokesman, Martin Rydie, said that Shane "takes its obligations under the Digital Services Act seriously and has always cooperated fully" with European regulators.
Rajdi said that the platform has “invested significantly in measures to strengthen” its compliance with the rules in recent months, such as “comprehensive systemic risk assessments and mitigation frameworks, enhanced protections for younger users, and continued work to design our services in a way that promotes a safe and reliable user experience.”
Shane announced in January that it was introducing age checks to ensure that underage users cannot access content and products they shouldn't.
The commission is monitoring how Shane conducts these age checks, another official said. However, there is not enough evidence to launch an investigation into whether the platform also violated provisions related to the protection of minors.
Today's announcement comes as the Commission accelerates the implementation of its Digital Services Act.
Other investigations are currently underway against Chinese online retailer AliExpress, as well as social media platforms Facebook, Instagram, X, and TikTok.
The EU told TikTok this month that it must change its “addictive” design and make significant changes, including those related to infinite scrolling, to avoid penalties.
The EU is also facing criticism from President Donald Trump's administration over investigations into American tech giants, with Washington claiming that it is an instrument of "censorship".
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