Shein: €40 Million Fine Reveals Deeper Shock in Fashion Trade
Parijs, vrijdag, 4 juli 2025.
The French government has imposed a historic fine of €40 million on the ultra-fast fashion giant Shein, signalling a significant moment for the fashion sector. During a Commerce Alliance meeting, Minister Véronique Louwagie not only revealed this sanction but also warned about ongoing investigations indicating potential structural violations. This fine marks a critical turning point in the discussion about unfair trade practices in the international fashion industry, focusing on enforcing European regulations and protecting local market players against competition that seems to ignore existing norms.
Fine and Background
The French government has confronted Shein, the international ultra-fast fashion giant, with a remarkable fine of €40 million. This sanction was announced last Wednesday by Minister of Commerce Véronique Louwagie during a meeting of the Commerce Alliance, an organisation representing approximately 150 companies with over 150,000 employees in France [1]. The fine marks a critical moment in enforcing trade standards within the European fashion market.
Broader Investigation Context
Multiple investigations are currently ongoing into Shein, indicating potential structural violations in their business model [1]. During the conference, there were repeated references to the unfair competition from ultra-express fashion providers not conforming to the standard rules of European market players [2]. The fine sends a strong signal to the international fashion trade about the necessity of complying with local regulations.
Market Dynamics
Recent e-commerce data illustrates the complex market position of Shein. While many retail companies show fluctuating growth figures, Shein consistently achieves year-on-year revenue growth [3]. This performance contrasts with declines among competitors like ASOS, underlining the company’s exceptional market dynamics.