Leveling the Playing Field: Why the EU and member states must rein in third country platforms

Europe’s retail sector is grappling with a silent but serious crisis. Every day, hundreds of thousands of parcels from third country platforms are flooding the EU Single Market, bypassing customs checks, dodging taxes, flouting EU product safety rules and undermining the regulations that European businesses rigorously follow. Competition is welcome—but it must be fair and rule-based. What we face today is outright unfairness on a massive scale, putting an entire sector at risk and exposing consumers to unsafe products without accountability. It is high time for EU-policymakers to act decisively.

Third-country e-commerce giants such as Temu and Shein have dramatically expanded their presence in the EU market, presenting unprecedented challenges for  fair competition, consumer protection and regulatory compliance. The sheer number are alarming: Between 2016 and 2022, the share of EU consumers purchasing from non-EU sellers rose by 36%. In 2024 alone, 4.6 billion low-value parcels entered the EU, with over 91% coming from China, estimates count on 6 billion for 2025. Germany alone receives an estimated 400,000 parcels daily from Chinese platforms or E-commerce sellers. These platforms exploit loopholes by splitting shipments to remain under the threshold of 150€ to avoid duties, undervaluing goods, and operating outside the reach of EU enforcement.

The fallout is severe. Many items--toys, cosmetics, and clothing—fail EU safety standards,  often containing hazardous materials or lacking proper labeling. Consumers are lured by fake discounts and manipulative sales tactics, while return policies remain opaque and accountability elusive.

But the damage runs deeper. Investigations have linked these platforms to forced labor, particularly in Xinjiang-sourced cotton, and wide-scale environmental degradation. Their business models rely on algorithm-driven sourcing, harsh labour conditions, and a disregard for sustainability. Meanwhile, European retailers—who comply with labor laws, environmental regulations, and tax obligations—are left at a serious competitive disadvantage.

The EU toolbox for safe and sustainable e-commerce, published in February 2025, includes valuable proposals but lacks the necessary ambition for immediate action.

The EU customs reform must be implemented as quickly as possible, particularly the part concerning e-commerce must be brought forward in time. The European Economic and Social Committee (EESC) urges the EU Member States to immediately give the EU Commission a mandate to develop the customs data hub.

The European Economic and Social Committee (EESC) has proposed a clear path forward. First, we must require third-country platforms to appoint legally responsible operators within the EU. Second, we must abolish the €150 customs exemption that incentivizes fraud by systemically undervaluing and parceling shipped goods. Third, we need stronger enforcement of consumer protection laws and digital monitoring of e-commerce practices.

Longer term, we must accelerate the reform of the EU Customs Code and develop a unified digital compliance system. Fragmented national responses—like Germany’s e-commerce action plan or Poland’s formal complaints—are not enough. We need coordinated EU-level action to restore fairness and protect the integrity of our Single Market.

Europe’s commitment to a social market economy, enshrined in Article 3.3 of the Treaty on European Union, demands that competition be fair, transparent, and sustainable. Third country platforms, particularly from China are testing the limits of that commitment. It’s time we respond clearly and boldly—not with rhetoric, but with regulation.

By Antje Gerstein, Rapporteur of INT/1084 Call for fair competition in regard to Third country platforms