France has triggered a global warning by passing legislation directly targeting platforms like Shein and Temu, global leaders in ultra-low-cost e-commerce. With a model based on accelerated production, massive advertising, and nearly unbeatable prices, these companies have won over consumers but also drawn criticism for environmental, labor, and commercial practices. Now, the French government aims to make these operations less advantageous by imposing specific fees, fines, and restrictions. The move is not isolated: it reveals a strategic repositioning of Europe in response to the growing influence of Chinese digital retail.
Among the measures already implemented, a €40 million fine against Shein for misleading offers and unsubstantiated environmental claims stands out, according to the Wall Street Journal. Additionally, a new law approved by the French Senate in June 2025 introduces environmental fees of up to €10 per item sold by 2030 and bans influencers from promoting ultra-fast fashion products. The official justification is to reduce environmental impact and curb hyperconsumption, but experts also see a political move to protect the local industry and respond to mounting pressure from climate and labor rights organizations.
The French strategy also operates on another front: complicating the logistical model that sustains these apps’ cost advantage. The government has proposed to the European Union imposing fees on packages valued under €150, currently exempt. Since Temu and Shein heavily rely on small international shipments to evade conventional taxation, the measure could drastically reduce their competitiveness. Simultaneously, Alibaba, Temu’s parent company, faces EU investigations into data transparency and consumer security, increasing regulatory pressure on Chinese Big Tech.
The central question is whether these platforms will be able to adapt their business models to a stricter regulatory environment. Although Shein has pledged to invest €13 million in compliance and safety, doubts remain about its ability to operate with the same margins when faced with tougher environmental, fiscal, and commercial rules. Analysts warn that these platforms’ success largely hinges on the fragility of regulatory systems—and when these loopholes close, the price advantage may disappear.
According to Rebecca Fischer, co-founder and Chief Strategy Officer (CSO) of Divibank, beyond a commercial dispute, what’s at stake is the very future of digital consumption. ‘France’s offensive signals a desire to redesign the rules of global e-commerce, raising the social and environmental costs of what was once sold as affordable and democratic. For Chinese brands, the challenge is clear: either reinvent their operations to meet new international demands or see their global expansion slow down. In the end, consumers, drawn by low prices, will have to decide how much they’re willing to pay for convenience—and how much they demand in responsibility,’ she states.
