France has raised a global alarm by approving legislation that directly targets platforms like Shein and Temu, world 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 have also drawn criticism for their environmental, labor, and commercial practices. Now, the French government is seeking to make these operations less advantageous by imposing specific fees, fines, and restrictions. This move is not isolated: it reveals a strategic repositioning of Europe in the face of the growing influence of Chinese digital retail.
Among the measures already adopted, the €40 million fine imposed on Shein for misleading offers and unproven environmental claims stands out, according to the Wall Street Journal. Furthermore, a new law approved by the French Senate in June 2025 imposes environmental taxes of up to €10 per item sold by 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 a political movement to protect local industry and respond to growing pressure from climate and labor rights organizations.
The French strategy also operates on another front: hindering the logistics model that underpins these apps’ cost advantage. The government has proposed to the European Union that it levy taxes on packages worth less than €150, which are currently exempt. Since Temu and Shein rely heavily on small international shipments to avoid conventional taxation, this measure could drastically reduce their competitiveness. Meanwhile, Alibaba, Temu’s owner, is facing EU investigations into data transparency and consumer security, increasing regulatory pressure on the Chinese tech giant.
The central question is whether these platforms will be able to adapt their business models to a stricter regulatory environment. Although Shein has promised to invest €13 million in compliance and security, doubts remain about its ability to operate at the same margins when faced with stricter environmental, tax, and trade rules. Analysts warn that the success of these platforms is largely based on the weaknesses of regulatory systems—and that when these loopholes close, their price advantage could disappear.
Second Rebecca Fischer, co-founder and Chief Strategy Officer (CSO) yes Divibank, more than a trade dispute, what’s at stake is the very future of digital consumption. “France’s offensive signals a desire to reshape the rules of global e-commerce, raising the social and environmental costs of what was previously marketed as accessible and democratic. For Chinese brands, the challenge is clear: either they reinvent their operations to meet new international requirements, or they will see their global expansion slow. Ultimately, consumers, attracted by low prices, will have to decide how much they are willing to pay for convenience—and how much they demand in terms of responsibility,” he states.
