Zalando Challenges EU Digital Rules in Landmark Court Appeal

Europe’s largest online fashion retailer, Zalando, has escalated its legal battle against the European Union’s digital regulations, taking the matter to the Court of Justice of the European Union (CJEU). The company is challenging its classification as a “very large online platform” (VLOP) under the Digital Services Act (DSA), a designation that brings strict regulatory obligations.

Earlier this year, the Luxembourg-based General Court dismissed Zalando’s initial lawsuit, stating that its hybrid business model—selling its own products alongside those of partners—did not exempt it from the stringent rules applied to tech giants like Google and Meta.

Zalando’s appeal, however, asserts that the lower court misinterpreted the definition of third-party content, a move that could affect countless online services across Europe. According to the company, such an expansive reading of the law risks bringing industries ranging from media and tourism to supermarkets under the DSA’s heavy compliance requirements.

In addition, Zalando argues that the General Court has effectively reversed the burden of proof. Rather than the EU having to justify why the company should be classified as a VLOP, Zalando claims it has been forced to prove why it should not fall into this category. The fashion retailer also contests the method used to calculate active recipients of its service—a key metric that determines VLOP status.

The outcome of this case could set a major precedent for Europe’s digital economy, influencing how hybrid platforms are regulated and how companies navigate the growing compliance landscape under the DSA.