Background
Zalando online shop offers a variety of clothing and beauty products. The platform’s product portfolio includes the inventory of Zalando Retail products, as well as the products sold by third-party sellers who are registered users of the Zalando platform.
Third-party sellers on the Zalando website become part of Zalando’s network through the Partner Programme.
On 25 April 2023, the European Commission published a decision designating the Zalando SE website as a Very Large Online Platform (VLOP). The EU Commission’s decision is based on the Digital Services Act (DSA), a previously introduced legislation that serves as a legal instrument, providing EU Institutions and institutions of EU Member States with administrative tools to protect EU customers from hazardous, illicit, or damaging products and services provided by respective platform operators.
The designation of the EU Commission that Zalando is operating as the VLOP practically means that Zalando should establish an additional administrative and risk assessment framework in accordance with the DSA, in addition to other requirements established for e-commerce Marketplaces. The
The EU Commission provided an in-depth technical review of Zalando’s traffic to determine if the platform had reached the specifically designated threshold (main criterion) that identifies a platform as the VLOP. This criterion is called Average Monthly Active Recipients(AMAR), and the threshold is 45 million.
Zalando appealed to the EU Commission’s decision before the EU General Court.
General Court’s Decision
On September 3, 2025, the General Court of the EU delivered a significant judgment in Case T‑348/23, i.e., Zalando SE vs EU Commission, rejecting Zalando’s argument to challenge the Commission’s decision to designate Zalando’s website as the Very Large Online Platform(VLOP), under the Digital Services Act.
The description of the landmark case decision could unquestionably follow the General Court’s Decision in the Zalando case.
Why, one could argue?
Simply, it is the first decision of the EU court in this regard. Different platform operators brought the case before the General Court to challenge the Commission’s designation as VLOP. The Court’s judgment in the Zalando case, as a clear support to the previous Commission’s decision, is a strong precedent for future disputes.
Impact on Zalando
Being designated as the VLOP under the Digital Services Act means that digital platforms must now meet a set of new requirements. This administrative burden starts from aligning with additional regulatory compliance challenges, risk-management strategies, new channels for communication with tax authorities, and specifically delegated institutions of the EU.
The minimum scope of new responsibilities that Zalando will be mandated to meet under DSA requirements for VLOP could be summarized as follows:
- Configuration of risk assessment procedures for accurate identification and resolution of the “platform’s risks” for its users
- Incorporation of the more stringent measures to combat the sale of illegal goods and the distribution of “damaging” content
- Channels for simpler data access to respective officials
- Designation of the compliance officer as the point of contact for the Commission
- Payment of a defined supervisory fee to the EU budget
Zalando’s representatives stated that they will appeal the General Court’s judgment to the Court of Justice as a last resort.
Takeaway
The General Court’s judgment on the challenge brought by Zalando to the previous Commission’s decision, which supports the designation of the Zalando platform as the VLOP, is a significant precedent for future challenges brought to court by other platforms that are also designated as VLOP.
Author: Aleksandar Delic
The Court’s judgment provides powerful support for the validity of the AMAR criterion, which is used as a primary tool to determine the designation of the platform in accordance with the provisions of the DSA. This landmark decision has the potential to significantly expand the scope of requirements for digital platforms within the EU’s compliance framework.
Indirect Tax Manager – E-Commerce
The EU General Court rejected Zalando’s appeal, supporting the European Commission’s decision to designate Zalando as a Very Large Online Platform (VLOP) under the Digital Services Act.
Zalando was designated as a VLOP based on the Digital Services Act’s criteria, specifically the Average Monthly Active Recipients (AMAR) threshold of 45 million, which Zalando exceeded.
Zalando will need to establish risk assessment procedures, combat illegal goods and damaging content, set up simpler data access channels for officials, designate a compliance officer, and pay a supervisory fee.
The General Court’s judgment creates a strong precedent for future challenges from other digital platforms facing VLOP designation, solidifying the AMAR criterion as a valid tool for determining VLOP status.
The AMAR criterion is crucial in designating platforms as VLOPs, and the General Court’s ruling validates its use as an effective measurement for determining the scope of regulatory responsibilities for digital platforms.
Yes, Zalando’s representatives have stated they will appeal the decision to the Court of Justice as a last resort.