France has issued a global alert by passing legislation that directly targets platforms like Shein and Temu, global leaders in ultra-low-cost e-commerce. With a model based on accelerated production, massive advertising, and almost unbeatable prices, these companies have gained consumers but have also faced criticism for environmental, labor, and commercial practices. Now, the French government is seeking to make these operations less advantageous by imposing taxes, fines, and specific restrictions. The movement is not isolated: it reveals a strategic repositioning of Europe in response to the growing influence of Chinese digital retail.
Among the measures already taken, the €40 million fine imposed on Shein for deceptive offers and unsubstantiated environmental claims stands out, according to theWall Street JournalAdditionally, a new law approved by the French Senate in June 2025 sets environmental fees of up to €10 per item sold until 2030 and prohibits influencers from promoting ultra-fast fashion products. The official justification is to reduce environmental impact and curb hyperconsumption, but experts also see it as a political move to protect the local industry and respond to the growing pressure from entities related to climate and labor rights.
The French strategy also operates on another front: to hinder the logistical model that supports the cost advantage of these apps. The government proposed to the European Union the imposition of fees on packages valued below €150, currently exempt. Since Temu and Shein heavily rely on small international shipments to avoid conventional taxation, the measure could drastically reduce their competitiveness. Meanwhile, Alibaba, owner of Temu, is facing EU investigations into data transparency and consumer safety, which increases regulatory pressure on the Chinese big tech.
The central question is whether these platforms will be able to adapt their business model to a more stringent regulatory environment. Although Shein has promised to invest €13 million in compliance and security, doubts still linger about its ability to operate with the same margins when faced with stricter environmental, tax, and commercial regulations. Analysts warn that the success of these platforms largely depends on the fragility of regulatory systems — and that when these gaps close, the price advantage may disappear.
SecondRebecca Fischer, co-founderandChief Strategy Officer (CSO) yesDivibankMore than a commercial dispute, what is at stake is the very future of digital consumption. "The French offensive signals a desire to redraw the rules of global e-commerce, increasing the social and environmental costs of what was previously sold as accessible and democratic. For Chinese brands, the challenge is clear: either reinvent their operations to meet the new international demands or see their global expansion slow down. Ultimately, the consumer, attracted by low prices, will have to decide how much they are willing to pay for convenience — and how much responsibility they demand," it states.
