Large fashion companies operating in the European Union can no longer destroy unsold clothing, accessories and footwear under a new rule intended to reduce textile waste and promote more circular business models.

The prohibition entered into application on July 19, 2026, under the EU’s Ecodesign for Sustainable Products Regulation, commonly known as the ESPR.

The measure directly affects fashion brands, retailers, marketplaces and e-commerce companies that manage excess inventory, discontinued collections and returned products. Instead of sending usable goods to landfill or incineration, affected businesses must prioritize resale, donation, repair, refurbishment, remanufacturing or recycling.

For the fashion e-commerce sector, the regulation transforms returns and excess inventory from a cost-management issue into a compliance priority.

What does the EU ban cover?

The prohibition applies to unsold:

• Clothing
• Clothing accessories
• Footwear
• Returned products within these categories

Large companies are affected from July 19, 2026. Medium-sized enterprises are expected to be subject to the same prohibition as of July 19, 2030, while micro and small businesses are currently exempt.

The rule covers products that were never sold as well as returned goods that remain suitable for resale, repair or reuse.

Companies must follow the EU waste hierarchy. This means prevention and reuse should be prioritized before recycling, incineration or disposal.

Discount sales, outlet distribution, secondary marketplaces, donation programs and repair services may therefore become increasingly important routes for unsold stock.

Why has the EU introduced the measure?

The European fashion sector generates significant waste before many products are ever used.

According to figures referenced by the European Commission, between 4% and 9% of textile products placed on the European market are destroyed before use. This represents an estimated 264,000 to 594,000 tonnes of textiles annually.

The Commission also estimates that destroying unsold textiles generates approximately 5.6 million tonnes of carbon dioxide emissions every year.

These figures include more than the environmental impact of disposal. Every destroyed product also represents wasted raw materials, water, energy, transport and labor.

The prohibition is intended to discourage overproduction and encourage brands to improve forecasting, stock management and product circulation.

Are any exceptions allowed?

Products may still be destroyed in limited and justified circumstances.

Possible exceptions include goods that:

• Present a health or safety risk
• Are contaminated
• Are damaged beyond repair
• Are counterfeit
• Infringe intellectual-property rights
• Cannot reasonably be reused or recycled

However, high storage costs, reduced profitability or the difficulty of reselling a product are not sufficient reasons for destruction.

Businesses using an exception must be able to prove why destruction was necessary. This may require safety reports, damage assessments, correspondence with donation partners or evidence that reuse and recycling options were unavailable.

Relevant documentation must generally be retained for 5 years to allow national authorities to inspect it.

Why the ban matters for fashion e-commerce

Online fashion retailers are particularly exposed because they normally process higher return volumes than physical stores.

Customers often order several sizes, styles or colors and return the products they do not want. Returned goods may arrive with damaged packaging, missing labels or signs of handling. Seasonal products can also lose value while they move through the returns process.

In the past, some companies concluded that inspecting, cleaning, repackaging and restocking a low-value product cost more than disposing of it.

That calculation must now include regulatory compliance.

A product cannot be destroyed simply because processing it is expensive. Retailers must determine whether it can be resold, repaired, donated or recycled before considering disposal.

This increases the importance of fast returns processing. The longer a product remains in a returns center, the more likely it is to lose commercial value.

Reverse logistics becomes a compliance function

Retailers need visibility over what happens to every returned or unsold product after it reaches a warehouse, fulfillment center, store or logistics partner.

A compliant reverse-logistics operation should be able to direct products towards:

• Immediate resale
• Cleaning and repackaging
• Repair or refurbishment
• Outlet or secondary-market sale
• Donation
• Recycling
• Documented destruction as a last resort

This will require better product grading and stronger links among order management, inventory, and warehouse systems.

Companies should also review contracts with fulfillment and waste-management providers. Agreements should clearly explain who assesses returned goods, who approves disposal and who stores the evidence supporting each decision.

Outsourcing logistics does not necessarily remove the retailer’s regulatory responsibility.

Recommerce could benefit

The ban is likely to increase the supply of clothing and footwear available for resale.

Brands may expand official second-hand stores, outlet platforms, refurbishment programs and partnerships with recommerce marketplaces.

Other companies may use business-to-business liquidation networks to sell excess stock to authorized resellers rather than destroying it.

Luxury brands face a more complex challenge. Heavy discounting can weaken exclusivity, while uncontrolled liquidation may place products in unauthorized sales channels.

These companies may need to develop controlled resale programs, authenticated second-hand platforms or material-recovery systems that protect both compliance and brand value.

Better forecasting becomes essential

The best way to avoid problems with unsold stock is to produce and purchase more accurately.

Fashion businesses are likely to invest further in artificial intelligence, predictive analytics and real-time stock visibility.

Useful measures include:

• Smaller initial production runs
• Faster replenishment cycles
• Improved local demand forecasting
• Earlier markdowns
• Stock transfers between markets
• Pre-orders
• On-demand production
• Better analysis of return reasons

Retailers that identify weak demand early can redirect stock while it still has commercial value.

The regulation may therefore favor companies with flexible supply chains over businesses dependent on large advance orders and long production cycles.

Marketplaces must clarify responsibility

Online marketplaces may also be affected when they own inventory, provide fulfillment services or determine how returns are processed.

They must establish who owns a returned product, who decides whether it can be resold and who is responsible for documenting any disposal.

Marketplaces may need to revise automatic destruction settings and provide sellers with clearer resale, donation and recycling options.

This is especially important for fulfillment programs in which merchants have limited control over how returned or aging stock is handled.

What should retailers do now?

Affected businesses should immediately review every point at which returned or unsold stock leaves their inventory.

Priority actions include:

• Suspending automatic destruction policies
• Establishing product-grading procedures
• Creating resale, repair, donation and recycling routes
• Requiring approval before destruction
• Retaining evidence for every exception
• Reviewing logistics-provider contracts
• Training warehouse and returns teams
• Improving inventory and returns data
• Identifying approved resale and recycling partners

Companies should also prepare for disclosure obligations that require greater transparency about the quantity and types of unsold goods they discard.

A major change for European fashion

The ban on destroying unsold clothing and footwear is part of the EU’s wider effort to make textiles more durable, repairable and recyclable.

For fashion e-commerce, its impact will be felt across inventory planning, returns management, fulfillment, resale and logistics.

Unsold products can no longer be treated as disposable stock. They must be tracked and directed towards the most valuable compliant alternative.

Businesses with accurate forecasting, efficient reverse logistics and established resale networks will be best positioned to adapt.

For the European fashion industry, destruction is no longer the simplest answer to excess inventory.

The post EU ban on destroying unsold clothing and footwear enters into force appeared first on Cross-Border Magazine.

The European Union’s fintech industry has become a major infrastructure provider for global e-commerce. European companies now process trillions of euros in payments, provide financing to millions of online shoppers, connect merchants to local payment methods, and enable marketplaces to manage sellers, currencies, fraud, and payouts through a single platform.

The industry’s global importance is visible in the numbers:

• European B2C e-commerce turnover reached €842 billion in 2024.
• Adyen processed approximately €1.394 trillion in payments during 2025.
• Klarna facilitated $127.9 billion in gross merchandise volume in 2025.
• Klarna served approximately 118 million active consumers and 966,000 merchants by the end of 2025.
• Mollie provides payment services to more than 250,000 businesses.
• The euro area recorded approximately 77.7 billion non-cash payments in the first half of 2025.
• E-money transactions in the euro area reached approximately €300 billion during the same six-month period.

These figures show that EU fintech is no longer a niche financial-technology sector. It is part of the core infrastructure supporting international digital commerce.

Europe’s e-commerce and fintech market in numbers

European B2C e-commerce turnover increased from €784 billion in 2023 to €842 billion in 2024.

That represented:

• Nominal annual growth of 7%
• Real growth of approximately 4.6% after inflation
• An increase of €58 billion in one year

The expansion of online commerce is also reflected in consumer adoption.

In 2025, approximately 78% of EU internet users purchased goods or services online. In 2015, the equivalent share was approximately 62%.

Online-shopping adoption was particularly high among younger European consumers:

• 90% of internet users aged 25–34 shopped online
• 87% of those aged 35–44
• 84% of those aged 16–24

Fintech companies support this market by connecting shoppers, merchants, banks, card networks and local payment systems.

The volume of European payments is considerably larger than e-commerce turnover alone. The euro area recorded approximately 77.7 billion non-cash payments in the first half of 2025, an increase of about 7.7% compared with the same period one year earlier.

Excluding e-money payments, cards represented approximately 73.9% of the number of non-cash transactions. Credit transfers represented around 19.3%, while direct debits accounted for approximately 3.3%.

This scale provides European payment companies with a large domestic market in which to develop technology before expanding internationally.

Adyen demonstrates the global scale of EU payment infrastructure

Amsterdam-headquartered Adyen is one of the clearest examples of the EU fintech industry’s international impact.

During 2025, Adyen processed approximately €1.394 trillion in payment volume.

Its results included:

• €649 billion processed in the first half of 2025
• €745.3 billion processed in the second half
• €2.36 billion in annual net revenue
• €311 billion in point-of-sale payment volume

Adyen’s 2025 processed volume was approximately 65% larger than the entire €842 billion European B2C e-commerce market reported for 2024.

The comparison is not exact because Adyen processes both online and physical-store transactions. Nevertheless, it demonstrates the scale achieved by a single European fintech company.

Adyen provides payment infrastructure to international retailers, digital platforms, subscription companies and marketplaces. Its services can include:

• Online and in-store payments
• International and local payment methods
• Multi-currency processing
• Recurring transactions
• Fraud detection
• Payment authentication
• Marketplace payments
• Merchant payouts
• Financial accounts
• Card issuing

Adyen’s platform business also provides evidence of the growth of embedded finance.

In the third quarter of 2025, its platform net revenue reached €68.6 million, increasing by 50% year over year.

This suggests that marketplaces and software platforms increasingly want to integrate payments and financial services directly into their own products.

European BNPL has changed global online checkout

Sweden’s Klarna has helped turn buy now, pay later from a regional payment option into a global e-commerce product. Klarna reported $127.9 billion in gross merchandise volume in 2025, representing 22% annual growth.

By the end of that year, Klarna had:

• Approximately 118 million active consumers
• Around 966,000 merchants
• Operations across numerous European and international markets

By the first quarter of 2026, the company reported:

• 119 million active consumers
• More than one million merchants
• Quarterly gross merchandise volume of $33.7 billion
• Quarterly revenue of $1 billion
• GMV growth of 33% year over year

Klarna’s merchant network grew by approximately 49% in the year leading to the first quarter of 2026.

Its expansion shows how an EU fintech model can influence consumer expectations in markets such as the United States.

BNPL allows customers to postpone payment or divide the purchase price into installments. For merchants, it may reduce the immediate affordability barrier associated with higher-value purchases.

However, performance varies by market and product category. BNPL does not automatically guarantee higher conversion or average order values for every merchant.

The sector also faces increased scrutiny concerning consumer debt, affordability assessments and the use of multiple credit providers.

EU fintech makes cross-border e-commerce easier

International e-commerce requires merchants to manage more than card acceptance.

Businesses selling across borders must handle:

• Local payment preferences
• Currency conversion
• International acquiring
• Settlement currencies
• Refunds
• Fraud prevention
• Seller verification
• Regulatory compliance
• International payouts
• Financial reconciliation

EU fintech companies increasingly combine these capabilities into a single integration.

For example, an international merchant selling across Europe may need to offer:

• iDEAL in the Netherlands
• Bancontact in Belgium
• Bizum in Spain
• SEPA Direct Debit
• Local bank transfers
• Klarna
• International cards
• Apple Pay
• Google Pay
• Account-to-account payments

Dutch fintech Mollie provides payment services to more than 250,000 businesses across approximately 30 countries.

The company reported net-revenue growth of 29% in 2025 and expanded into 12 additional markets.

Payment aggregation is especially important for small and medium-sized businesses. Without fintech providers, merchants may need separate contracts, banking relationships and technical integrations for every payment method and market.

By centralizing these services, fintech reduces the cost and complexity of international expansion.

Open banking is creating an alternative to card payments

The EU’s revised Payment Services Directive, PSD2, established the regulatory basis for open banking.

PSD2 allowed licensed providers, with customer permission, to access banking information or initiate payments directly from bank accounts.

For e-commerce, this created an alternative to conventional card payments.

Account-to-account payments may offer merchants:

• Faster confirmation
• Reduced dependence on card networks
• Potentially lower transaction costs
• Lower exposure to card chargebacks
• Direct bank-based payment authorization
• Greater suitability for high-value purchases

Open banking is particularly significant because international card schemes still dominate much of Europe’s payment market.

Approximately two-thirds of euro-area card transactions are processed through non-European companies. Several euro-area countries remain entirely dependent on international card schemes.

The development of European account-to-account systems could therefore affect both payment costs and Europe’s financial independence.

Instant payments could accelerate e-commerce settlement

European instant-payment rules are intended to make euro transfers available within seconds, at any time of day.

For e-commerce businesses, instant payments could improve:

• Cash flow
• Payment confirmation
• Marketplace seller payouts
• Supplier payments
• Refund processing
• Treasury management

The opportunity is substantial because credit transfers already account for approximately 19.3% of euro-area non-cash transactions by volume, excluding e-money. Instant settlement could be particularly valuable for marketplaces that collect customer funds and distribute money to thousands of independent sellers.

Cards are unlikely to disappear. They remain widely accepted and provide established consumer protections, recurring-payment functionality and dispute mechanisms. However, instant bank payments could capture a larger share of e-commerce transactions where cost, speed or transaction value is particularly important.

E-money transactions reached €300 billion in six months

E-money has become another significant component of European digital commerce.

During the first half of 2025, the euro area recorded:

• Approximately 4.7 billion e-money payment transactions
• Transaction growth of 10.7% year over year
• A total transaction value of approximately €300 billion
• Value growth of 13.2%

E-money accounts represented approximately 98% of the number and 97% of the value of e-money transactions.

This infrastructure supports:

• Digital wallets
• Prepaid accounts
• Marketplace seller balances
• Merchant settlement accounts
• Multi-currency products
• Embedded financial accounts
• Business cards
• Platform payouts

For marketplaces, e-money infrastructure makes it possible to accept a consumer payment, deduct a commission, reserve funds for refunds, and distribute the remainder to one or several sellers.

These processes would be difficult to manage at scale using conventional bank transfers alone.

Fintech is turning marketplaces into financial-service providers

Marketplace and software platforms increasingly use fintech infrastructure to offer financial products directly to their merchants.

These services can include:

• Integrated payment processing
• Seller accounts
• Automated payouts
• Business cards
• Working-capital financing
• Foreign exchange
• Fraud prevention
• Identity verification
• Revenue reporting

This market is growing rapidly.

Adyen’s platform net revenue increased by 50% in the third quarter of 2025. In the first quarter of 2026, its platform revenue reached approximately €75 million, up 35% year over year, or 40% at constant currency.

Embedded finance allows platforms to generate revenue from payments while strengthening their relationship with merchants.

A business using the platform may no longer need to obtain separate services from a bank, payment processor, lender and card issuer. The platform can combine these capabilities through fintech APIs.

EU payment regulation has influenced global fraud prevention

The EU’s Strong Customer Authentication requirements changed how online payments are verified.

Many electronic transactions now require at least two independent authentication elements, such as:

• A password
• A registered mobile device
• A banking application
• A fingerprint
• Facial recognition

This encouraged global adoption of:

• 3-D Secure 2
• Biometric authentication
• Device recognition
• Risk-based authentication
• Transaction-risk analysis
• Banking-app approvals

The European Central Bank and European Banking Authority found that Strong Customer Authentication was effective against important forms of card fraud.

Nevertheless, fraud remains a major financial problem.

Across the EU and European Economic Area, losses reached:

• €2.2 billion from credit-transfer fraud in 2024
• €1.329 billion from card-payment fraud in 2024

Credit-transfer fraud losses increased by approximately 16% year over year, while card-fraud losses increased by around 29%.

Consumers bore approximately 85% of credit-transfer fraud losses, largely because many cases involved authorized payment scams. In these cases, customers were manipulated into approving the transaction themselves.

As a result, fintech fraud prevention is moving beyond stolen-card detection. Modern systems analyze device behavior, account history, customer location, payment values and behavioral patterns in real time.

The measurable impact on global e-commerce

EU fintech’s global e-commerce impact can be summarised through several major figures:

These numbers do not measure a single direct contribution to global e-commerce. No official statistical framework currently calculates exactly how much worldwide online revenue is generated by EU fintech.

However, the figures demonstrate the industry’s scale across payment processing, consumer finance, merchant acceptance, e-money and marketplace infrastructure.

The EU fintech industry has become a fundamental part of global e-commerce infrastructure.

Adyen processed approximately €1.394 trillion in 2025. Klarna facilitated $127.9 billion in annual merchandise volume and reached 119 million active consumers. Mollie serves more than 250,000 businesses, while euro-area e-money transactions reached approximately €300 billion in only six months.

These companies and payment systems help merchants:

• Enter new countries
• Accept local payment methods
• Manage several currencies
• Offer installment payments
• Prevent fraud
• Process marketplace payouts
• Embed financial services
• Access sales-based financing

The EU’s influence also extends beyond company performance. PSD2, open banking and Strong Customer Authentication have shaped payment regulation, security and financial innovation internationally.

Europe still faces challenges, including fragmented national payment habits, rising fraud losses and dependence on international card networks. Nevertheless, the numbers show that EU fintech has moved well beyond its regional market.

The post EU Fintech Industry Impact on Global E-commerce appeared first on Cross-Border Magazine.

Artificial intelligence is becoming one of the most important forces shaping digital retail across Europe. What began as a tool for automation and analytics is now influencing how online stores attract customers, personalize shopping journeys, optimize pricing, forecast demand, and improve profitability. For retailers competing in a fast-changing market, AI is no longer a side project. It is increasingly central to growth.

The data behind Europe’s online economy helps explain why this matters. European B2C e-commerce turnover reached €887.4 billion in 2023, and the market continues to expand as more consumers shift purchasing habits online. At the same time, AI adoption among businesses is accelerating, creating new opportunities for retailers that move early and execute well.

This combination of strong market demand and rising technology adoption is driving AI-driven e-commerce growth in the EU.

The Size of the Opportunity in Europe

Europe is one of the world’s largest and most diverse e-commerce regions. It combines mature digital markets such as Germany, the Netherlands, and the Nordics with high-growth opportunities across Southern and Eastern Europe.

According to European market data:

• European B2C e-commerce turnover reached €887.4 billion in 2023
• The market grew year over year from the previous period
• 77% of EU internet users aged 16–74 shopped online in 2024
• 67% of online purchases were made on mobile devices
• Cross-border B2C e-commerce sales in the EU reached €246 billion

These figures show a market with both scale and momentum. They also show why efficiency, relevance, and customer experience are becoming more important than simple traffic growth.

AI Adoption Is Accelerating Across EU Businesses

The strongest signal that AI will shape the future of retail in Europe is the speed of business adoption.

Recent EU data shows:

• 20.0% of enterprises in the EU used AI technologies in 2025
• This was an increase of 6.5 percentage points versus 2024
• AI adoption is significantly higher among large enterprises, but growing across all company sizes

This matters because once adoption reaches critical mass, AI shifts from competitive advantage to competitive necessity. Businesses that fail to modernize risk slower growth, lower margins, and weaker customer experiences.

Why AI Is Driving E-Commerce Growth in the EU

European retailers face a familiar challenge: customer acquisition is expensive, competition is intense, and shoppers expect seamless experiences across devices and channels.

AI helps solve these challenges by improving the economics of growth.

Instead of relying only on larger ad budgets or heavier discounting, retailers can use AI to increase the value of every visit, every transaction, and every customer relationship.

The most important growth levers include:

• Higher conversion rates
• Better average order value
• Lower acquisition costs
• Stronger retention and loyalty
• Faster fulfillment
• Better inventory efficiency
• Lower support costs

That is why AI is becoming essential for sustainable e-commerce expansion across the EU.

Smarter Search and Product Discovery

One of the fastest ways AI improves e-commerce performance is by helping shoppers find the right products faster.

Traditional search tools rely heavily on keywords. AI-powered search goes further by understanding context, intent, and behavior.

For example, instead of only matching exact terms, AI can interpret searches such as:

• Sustainable running shoes under €100
• Modern desk for small apartment
• Gift ideas for a 10-year-old who likes science

This reduces friction and shortens the path to purchase.

In large product catalogs, better discovery can significantly improve conversion rates while lowering bounce rates.

Personalization That Increases Revenue

Consumers increasingly expect relevant experiences. Generic storefronts often underperform in competitive markets.

AI allows retailers to personalize:

• Homepage content
• Product recommendations
• Promotions
• Search results
• Email timing
• Loyalty offers
• Cross-sell suggestions

The result is a shopping journey that feels more useful and less transactional.

Many retailers see personalization as one of the highest-return AI use cases because even modest improvements in conversion or basket size can scale quickly across thousands of orders.

Dynamic Pricing and Promotion Optimization

Price sensitivity remains high across many European markets. Consumers compare offers quickly, especially in categories such as electronics, fashion, and home goods.

AI helps retailers adapt prices and promotions in real time based on factors such as:

• Demand levels
• Inventory position
• Competitor activity
• Seasonality
• Customer behavior
• Margin goals

This allows businesses to stay competitive without relying on unnecessary blanket discounts.

For retailers managing multiple countries and currencies, pricing intelligence can be especially valuable.

Better Demand Forecasting and Inventory Management

Inventory problems damage growth in two ways:

• Stockouts lead to lost sales
• Overstock ties up working capital and increases markdown risk

AI forecasting models use historical sales, seasonality, promotions, and customer trends to improve planning accuracy.

For European retailers operating across multiple warehouses, markets, and languages, better forecasting can create a major operational advantage.

Benefits often include:

• Fewer stockouts
• Lower excess inventory
• Faster replenishment
• Better cash flow
• Improved fulfillment performance

AI-Powered Customer Service at Scale

Customer support remains expensive and difficult to scale, especially for brands selling across multiple countries and languages.

AI assistants and chat tools can now handle many common tasks such as:

• Order tracking
• Returns questions
• Product recommendations
• Sizing guidance
• Delivery updates
• Policy clarification

This improves response speed while reducing support costs. It also helps smaller retailers offer service levels that previously required larger teams.

How Leading EU Retailers Are Using AI

The impact of AI is visible across major European e-commerce players.

Zalando

Zalando uses AI to improve fashion recommendations, search relevance, and customer engagement. In a category where inspiration and fit matter, personalization can directly influence revenue.

OTTO

OTTO has invested in AI for demand forecasting and inventory optimization, helping improve planning efficiency in a large retail operation.

Allegro

Allegro applies intelligent systems to search relevance, marketplace optimization, and fraud prevention.

ASOS

ASOS has explored AI-driven personalization and trend analysis to improve digital shopping experiences.

bol.com

bol.com uses automation, recommendations, and service enhancements to improve conversion and customer satisfaction.

These examples show that AI is not limited to one country or one retail model. It is becoming a pan-European growth engine.

The Role of Mobile and Cross-Border Commerce

The EU market has unique characteristics that make AI especially valuable.

Mobile Commerce

With 67% of online purchases made on mobile devices, retailers must optimize smaller screens, faster decisions, and shorter attention spans.

AI helps by improving:

• Mobile search relevance
• Faster recommendations
• Simpler checkout journeys
• Personalized product ranking

Cross-Border Commerce

Cross-border B2C sales worth €246 billion show that consumers are increasingly willing to buy from sellers in other EU markets.

AI can support cross-border growth through:

• Language localization
• Currency adaptation
• Smarter recommendations
• Fraud detection
• Dynamic logistics decisions

Challenges Retailers Still Need to Solve

Although AI offers major opportunities, success is not automatic.

Data Quality

Poor product data weakens recommendations, search, and forecasting.

Integration Complexity

Disconnected systems limit automation and slow execution.

Compliance and Trust

European businesses must align AI use with privacy expectations and regulatory requirements.

Clear ROI Measurement

The best programs focus on measurable commercial outcomes rather than technology hype.

What Smaller EU Businesses Should Prioritize First

Not every company needs enterprise-scale budgets to benefit from AI.

Strong starting points include:

• AI search tools
• Product recommendation engines
• Automated email personalization
• Support assistants
• Demand forecasting tools
• Pricing optimization
• Fraud prevention systems

The goal should be practical wins that compound over time.

The Future of AI and E-Commerce in Europe

As adoption rises, AI will likely become embedded across the full retail value chain.

The next phase may include:

• Autonomous shopping assistants
• More predictive merchandising
• Deeper personalization
• Smarter marketplaces
• Faster cross-border operations
• More efficient supply chains

Retailers that build strong data foundations and implement high-value use cases early will be best positioned to lead.

The evidence is clear that AI is driving e-commerce growth in the EU. Europe already has a massive digital retail market, strong consumer adoption, and rapidly increasing business investment in AI. Companies are using intelligent systems to improve discovery, increase conversions, optimize operations, and create better customer experiences.

The next chapter of European e-commerce growth will not be defined only by who has the biggest catalog or the largest ad budget. It will be defined by who applies AI most effectively.

The post How AI Is Driving E-Commerce Growth in the EU appeared first on Cross-Border Magazine.

The rapid growth of online retail in the European Union has brought enormous opportunities — and equally significant challenges. One of the most pressing issues is the proliferation of counterfeit and substandard goods sold via digital platforms. 

At the heart of the effort to stem this trend lie two key institutions: the European Anti-Fraud Office (OLAF) and the European Union Intellectual Property Office (EUIPO). On 7–8 October 2025, they convened a major international conference in Alicante, Spain, titled “Ordered, counterfeited, unmasked: the global fight against e-commerce fakes”.

This article examines what the conference signified, why the topic is significant for e-commerce stakeholders (particularly in B2B and B2C contexts), and the implications for businesses operating or selling in the EU market.

What Happened at the Conference

The joint OLAF–EUIPO conference brought together over 100 participants, including more than 50 national customs authorities from around the world.

Representatives included law enforcement agencies, e-commerce platforms such as Amazon, Alibaba, Temu, Shopee, and Mercado Libre, as well as payment providers like PayPal, and international bodies like the World Customs Organization (WCO).

Topics covered included:

• Trends and case studies in online counterfeiting
  
• Techniques used by counterfeiters to exploit e-commerce channels
  
• Business models and logistics flows of major platforms
  
• Best practices for compliance and prevention of online fake goods
  

Key messages from the event

According to the press release, OLAF’s Acting Director-General, Salla Saastamoinen, emphasised that “Counterfeit toys, medicines and electronics are not harmless bargains — they endanger health and safety.”
Moreover, the event marked a shift “from knowledge-sharing to creating the basis for future operational collaboration” among national authorities, customs, platforms, and other stakeholders.

Why This Matters for E-commerce in the EU

Counterfeit goods are not just a matter of lost revenue for rights holders; they also pose significant risks to consumer health and safety, for example, through fake electronics, counterfeit medicines, and unauthorized toys. 

The online channel amplifies the risk due to anonymity, international shipping, and rapid turnover. The EU institutions recognise that controlling these flows is more complex than in traditional retail settings.

Regulatory and enforcement pressure increasing

The gathering signals that the EU is intensifying its enforcement and regulatory posture regarding e-commerce platforms, logistics flows, and imports. Businesses selling cross-border into the EU must anticipate greater scrutiny — from customs, platform compliance obligations, and IP and consumer law regulators.

Implications for B2B, B2C and marketplace players

• For B2C merchants and marketplaces, platforms will need stronger mechanisms to detect, remove, or block fake listings, verify sellers, monitor supply-chain integrity, and cooperate with customs and law enforcement bodies.
  
• For B2B sellers and brands, protecting brand integrity online becomes increasingly challenging, especially when non-EU sellers exploit cross-border flows. Brands must invest in monitoring, enforcement, and partnerships with platforms and authorities.
  
• For logistics and fulfillment providers: The transit of parcels — especially those from non-EU origins — is under increased scrutiny. Customs and border enforcement may tighten controls on low-value parcels, raising potential delays, costs, and compliance burdens.
  

Strategic opportunity for compliance-driven service providers

Companies offering compliance, IP monitoring, customs advisory, platform safety, and logistics integrity services are well-positioned. The increased regulatory and enforcement environment creates a demand for third-party solutions that enable merchants and platforms to stay ahead of risk.

The joint initiative by OLAF and EUIPO marks a significant milestone in the EU’s push to confront the growing threat of counterfeit goods sold online. For e-commerce operators, brands and logistics players in the European market, the message is clear: the regulatory and enforcement landscape is evolving, and compliance is becoming a competitive differentiator. Those who proactively adapt their processes, deepen their risk controls and collaborate across stakeholders will be better positioned to succeed in a safer, fairer digital marketplace.

The post OLAF & EUIPO Join Global Partners in Combating Fake Goods Online appeared first on Cross-Border Magazine.

Temu’s latest transparency report, published under the Digital Services Act (DSA), shows the platform reached an average of 115.7 million monthly users in the European Union during the first half of 2025.

That represents an increase of 12.9 million users compared to H2 2024, or a growth rate of 12.5 percent.

Strong performance in major markets

Growth was above average in Temu’s five largest European markets:

Romania stands out in relative growth

In relative terms, Romania recorded the fastest growth, up 20.5 percent to 4.7 million users. Several smaller EU markets, however, saw growth below the European average.

Operational Shifts Driving Expansion

Temu’s success in Europe is closely linked to recent changes in its strategy, particularly in logistics and local seller integration.

Local-to-local logistics

Temu has been investing in a local-to-local logistics model, with a stated goal that 80 percent of European orders will eventually be shipped from within the EU. This reduces delivery times, improves returns handling, and minimizes customs-related delays.

Opening the marketplace to European sellers

Just over a year ago, Temu began allowing European sellers onto its platform. This not only diversifies product availability but also strengthens compliance with EU consumer protection standards.

The DSA and Temu’s VLOP Obligations

As a Very Large Online Platform (VLOP) under the Digital Services Act, Temu is legally required to publish biannual transparency reports. These must include:

• The average number of monthly active users across the EU
  
• A breakdown by Member State to assess national reach
  

The goal is to provide regulators with reliable data to supervise systemic risks, marketplace practices, and compliance levels.

Regulatory Challenges and Risks

Despite its strong growth, Temu is under increasing scrutiny from EU regulators and Member States, especially over product safety and consumer protection.

Unsafe and illegal products on the platform

Investigations have shown that Temu’s risk assessment procedures were incomplete, with unsafe or non-compliant goods, including toys and small electronics, still being sold in Europe.

France’s push for delisting sanctions

The French government has proposed that platforms repeatedly breaching EU rules, including Temu, should face delisting from search engine results such as Google. If implemented, this could significantly reduce Temu’s online visibility.

Risk of fines under the DSA

Non-compliance with DSA rules carries penalties of up to 6 percent of global turnover. As a VLOP, Temu faces strict obligations on risk assessments, illegal product removal, transparency, and systemic risk mitigation.

Opportunities vs. Risks for Temu in Europe

What Comes Next for Temu in the EU

Temu’s future in Europe will depend on how it balances rapid growth with regulatory compliance. Key areas to watch include:

• The European Commission’s decision on Temu’s product safety obligations
  
• Whether delisting sanctions gain traction in Brussels
  
• The pace of Temu’s shift to local-to-local logistics
  
• Consumer perception of safety, trust, and delivery reliability
  

Temu’s growth in the EU is undeniable, surpassing 115 million monthly users in H1 2025. Its logistics shift and marketplace expansion have strengthened its position in major markets like Germany, France, Spain, Italy, and Poland.

Yet, this rapid expansion is shadowed by mounting pressure under the Digital Services Act, with risks ranging from fines to potential delisting from search engines. To sustain momentum, Temu must not only expand but also demonstrate apparent compliance with EU regulations and rebuild consumer trust in product safety.

The post Temu’s EU Growth in 2025: Record Users, Local Logistics, and Rising DSA Scrutiny appeared first on Cross-Border Magazine.

More than 50 years ago, BBVA introduced the first bank card in Spain, revolutionizing how people paid for goods and services. This milestone marked the beginning of a transformation that would eventually make card payments the most common form of transaction in daily life. But the payments landscape is shifting again, and instant payment solutions are leading the charge.

The Rise of Card Payments: A Legacy of Innovation

In the early days, payment cards were a novelty—an alternative to cash promoted by banks through growing networks of ATMs, merchant agreements, and digital platforms. Over time, cards symbolized convenience, security, and global reach, becoming integral to modern commerce.

Yet the same banks that introduced card technology are now driving a new evolution in payments—one that favors real-time, low-cost digital transfers over traditional card-based systems.

Instant Transfers: The New Standard in European Payments

What Are Instant Payment Solutions?

Instant payments are digital transactions that move money between bank accounts within seconds, 24/7. Unlike cards, these solutions eliminate intermediaries, offering direct, secure, and cost-effective alternatives that align with the European Union's goals for digital sovereignty.

Bizum: Spain’s Leading Example

In Spain, Bizum has become a household name. Backed by a consortium of Spanish banks, Bizum has:

• 28+ million users
  
• 3.4 billion transactions
  
• 80,000+ participating merchants
  

Initially launched as a peer-to-peer (P2P) transfer service, Bizum now supports online purchases, in-store QR code payments, NGO donations, and identity verification. With plans to incorporate NFC technology, Bizum is poised to cover the full spectrum of digital payments.

Beyond Spain: Interoperability Across Europe

Spain is not alone. Italy’s Bancomat Pay and Portugal’s MB Way have followed similar paths. Recently, these three services signed an interoperability agreement allowing users to make instant payments across borders with a mobile phone—no foreign platforms are needed.

The Push for European Payment Autonomy

Why Interoperability Matters

Although each domestic payment solution was designed for local needs, its long-term success depends on pan-European compatibility. A Bizum user should be able to pay a merchant in Italy using Bancomat Pay, and vice versa. This vision is driving technological and regulatory efforts at the European level.

Support from European Institutions

The European Commission and the European Central Bank (ECB) have strongly advocated for homegrown payment solutions as an alternative to international card networks. Their economic and strategic motivation is ensuring Europe’s control over its financial infrastructure and monetary policy.

Initiatives such as PSD3 (the new Payment Services Directive) and SEPA Instant Credit Transfer (SCT Inst), which enables real-time euro transfers across the eurozone, are laying the groundwork for this interoperable payment ecosystem.

The Digital Euro: A Public Alternative for the Digital Age

The upcoming digital euro represents the next significant shift. Currently in development by the ECB, this central bank digital currency (CBDC) aims to serve as a digital complement to cash, ensuring privacy, accessibility, and financial autonomy in an increasingly cashless world.

Role of Instant Payment Platforms

Platforms like Bizum are well-positioned to serve as distribution channels for the digital euro. They already:

• Operate under European regulations
  
• Offer real-time bank-authenticated payments
  
• Have high levels of user trust
  
• Provide proven technical infrastructure
  

This makes them ideal for integrating and distributing the digital euro in a secure, scalable, and inclusive way.

A New Payment Paradigm: Mobile, Fast, and Merchant-Friendly

Today’s consumers and merchants demand more than just convenience. They expect mobile-friendly, private, and efficient payment systems. Instant transfers outperform traditional cards in many ways:

• Lower and more transparent costs
  
• Fewer intermediaries
  
• Faster settlement
  
• Bank-to-bank relationships
  

This benefits merchants, who gain more predictable fees, and consumers, who enjoy seamless, real-time transactions.

The Road Ahead: Toward a Unified, Sovereign European Payments System

The journey that began with BBVA’s first card is coming full circle. Once again, banks are leading innovation, this time with digital tools designed for a connected, sovereign, and user-centric Europe.

National solutions like Bizum, Bancomat Pay, and MB Way are not isolated successes—they are the foundation of a new interoperable ecosystem. With support from European institutions, integration with the digital euro, and strong merchant and user adoption, these platforms are shaping the future of payments in Europe.

Will Instant Transfers Replace Cards?

The final decision doesn’t lie with regulators or banks—it lies with users and merchants. As they gravitate toward instant, secure, and cost-effective alternatives, the role of cards may gradually diminish. What’s clear is that instant payment solutions, once just a supplement, are becoming central to Europe’s digital financial future.

The post From Cards to Instant Payments: The Future of European Transactions appeared first on Cross-Border Magazine.

The European regulation for artificial intelligence, the AI Act, approved in March 2024, could prevent Meta from implementing the Llama 3.1 AI models, as by the law definition they could be considered "a systemic risk" .

The AI Act was designed to protect the EU consumers and citizens, but it seems that it is instead blocking EU from accessing to the full power of the AI revolution.

A technical issue

In the technical documentation for the Llama 3 family of models - with the 3.1 models included - Meta states what the "scale" of these models is:

"We trained a model at a much larger scale than previous Llama models: our flagship language model was pre-trained using 3.8 × 10^25 FLOPs, almost 50 times more than the largest version of Llama 2. Specifically, we pre-trained a flagship model with 405B trainable parameters on 15.6T text tokens."

And precisely that computational power used to train these models is higher than what the AI Act specifies to not consider them a systemic risk.

With these technical limitations it is impossible to train a complex AI model. Now the EU authorities will have to make a choice: to enforce the law and thus have a considerable competitive disadvantage against the rest of the world, or to change the law to allow the use of more computational power in AI training.

The post The EU AI Act migth prevent Meta from implementing their AI models in Europe appeared first on Cross-Border Magazine.

The European Commission (EC) has accused Meta - the company headed by Mark Zuckerberg - of violating the rules established by the Digital Markets Act (DMA) with the "consent or pay" advertising model it imposes on users of its platforms. According to Brussels, this practice forces users to accept the combination of their personal data or to pay a fee to access an ad-free version, which violates EU regulations.

Following regulatory changes introduced by the EU in November last year, Facebook and Instagram's parent company introduced a binary option where the user must either pay or consent. Specifically, Facebook and Instagram users must choose between a monthly subscription without ads on the social networks or the free option in which personalized ads are displayed.

In its preliminary analysis, the Community Executive considered that the consent or pay option in its advertising model does not meet the requirements of European regulations. It pointed out that it does not give users the option to choose a service that uses a smaller amount of personal data than the personalized ads service. In addition, it does not allow users to freely choose whether they want to consent to their personal data being used.

"Our research aims to ensure contestability in markets where gatekeepers such as Meta have been accumulating personal data of millions of EU citizens for many years. Our preliminary view is that Meta's advertising model does not comply with the Digital Markets Act. And we want to empower citizens to take control of their own data and choose a less personalized advertising experience," said Margrethe Vestager, Vice President of the European Commission, in charge of competition policy.

The EU wants Meta to comply with the DMA

Brussels has stated that to ensure compliance with the DMA, users who do not give consent must continue to have access to an equivalent service that uses less personal data, in this case, for the personalization of advertising. The Commission has coordinated with the competent data protection authorities throughout the investigation.

As a result, the EC has warned Meta that it breaches the DMA. Following this preliminary analysis, the company now has the opportunity to exercise its right of defense by examining the documents in the Commission's investigation file and responding in writing to the Commission's preliminary conclusions. The Executive will conclude its investigation within 12 months of the initiation of proceedings on March 25, 2024.

If Brussels concludes that Meta has failed to comply with EU regulations after the 12-month investigation, it may impose fines of 10% of annual worldwide turnover, which may rise to 20% in the case of repeated infringements.

In addition, in case of systemic breaches, the EC can also take additional corrective measures, such as forcing a platform to sell a business or parts of it, or prohibiting it from acquiring additional services related to the sector in which there has been a systemic breach.

"Today, we take another important step towards ensuring Meta's full compliance with the DMA. Our preliminary view is that Meta's 'pay or consent' business model is in breach of the DMA. The DMA is there to give users back the power to decide how their data is used and to ensure that innovative companies can compete on a level playing field with tech giants in accessing data," stressed Thierry Breton, Internal Market Commissioner.

Often, online platforms collect personal data from users for online ad services. Given the technology giant's market position, it can impose conditions on its large user base and collect a large amount of personal data. This gives it a competitive advantage over other social networks that cannot access such a large amount of data and, in turn, raises the standards for advertising services on these platforms.

European regulations state that gatekeepers must seek users' consent to combine their personal data between designated core platform services and other services. If a user refuses such consent, they must have access to a less personalized but equivalent alternative. Online platforms cannot condition the use of the service or certain functionalities on users' consent.

The post The European Commission accused Meta of violating the DMA appeared first on Cross-Border Magazine.

Meta has issued a statement confirming that it will halt plans to train its Artificial Intelligence (AI) systems using user data in the European Union and the United Kingdom. In doing so, the company will follow the measures requested by the Irish Data Protection Commission (DPC) and the UK's Information Commissioner's Office (ICO) to delay training our large language models (LLMs) using public content shared by adults on Facebook and Instagram.

"The DPC welcomes Meta's decision to pause its plans to train its large language model using public content shared by adults on Facebook and Instagram across the EU and EEA," the DPC said in a statement. "This decision followed intense engagement between the DPC and Meta. In cooperation with its EU data protection authorities, the DPC will continue to engage with Meta on this issue."

The tech company has stated that they continue to work with the DPC so that people in Europe can have access "to the same level of AI innovation as the rest of the world" because the company will continue to train its AI with users in other markets such as the U.S. where regulations are not as strict. 

In the statement, it has also clarified that this will cause that "if we don't train our models on the public content that Europeans share on our services and others, such as posts or public comments, then the models and the AI features they power will not accurately understand important regional languages, cultures or hot topics. social media."

The post Meta halts the training if its AI systems in the EU appeared first on Cross-Border Magazine.

The European Commission recently announced that Shein, the ultra-fast fashion e-commerce giant, will be subject to additional regulations targeting huge online platforms (VLOPs) under the European Union's Digital Services Act (DSA). Shein has announced that it has consistently surpassed 45 million monthly users in the region, meeting the European Union's threshold to designate huge online service providers (VLOPs) under the DSA.

Although fashion was Shein's initial product focus, the e-commerce giant has rapidly expanded its inventory into a broader market, encompassing a growing range of lifestyle categories and home goods (such as cosmetics, school supplies, and pet products).

Its tactic of offering a wide range of fashion-focused products, typically at bargain prices, makes the market especially popular with younger users. However, it is a dynamic that could increase regulatory risk for Shein, as the Commission has said its priorities in enforcing the DSA include focusing on risks related to the protection of minors and safety in the marketplace. Inexpensive products may also have lower safety standards.

This designation is an essential aspect to consider as it means that the Singapore-based marketplace will soon have to comply with the strictest level of regulations for online platforms, requiring it to take steps to identify and mitigate potential risks, such as those related to the sale of counterfeit or illegal products or other types of content that could cause harm to consumer welfare.

Shein is not the only one

In doing so, Shein joins two dozen other platforms already designated as VLOPs or VLOSE (huge online search engines) by the EU. Other VLOP marketplaces include AliExpress, which is already under investigation by the Commission for alleged DSA infringements; Amazon, which has challenged its designation (but remains subject to the rules in the meantime); Booking.com; and Zalando.

The DSA's general obligations already applied to Shein, one of the thousands of online services subject to the general rules. But being named VLOP increases the fast fashion giant's regulatory risk. The EU expects Shein's first risk assessment report to be submitted in four months.

Penalties for not complying with the DSA can reach up to 6% of global annual turnover. Although the maximum fine does not increase for VLOPs, with more obligations on them, the level of regulatory risk they are subject to certainly increases.

"The Commission services will carefully monitor the platform's implementation of the DSA rules and obligations, especially with regard to measures to ensure consumer protection and address the spread of illegal products," the EU wrote in a press release accompanying Shein's appointment. It added that it is 'ready to work closely with Shein to ensure that these issues are properly addressed.'

In response, Shein's global head of public affairs, Leonard Lin wrote: 'We share the Commission's ambition to ensure that consumers in the EU can shop online with peace of mind, and we are committed to doing our part. We also share a commitment to the principles of transparency and accountability that are at the core of the DSA, as reflected in our supply chain governance standards and our interactions with our users. We will continue to work constructively with the European Commission to ensure we provide a safe and compliant environment for our online community."

The post Shein faces more regulations inside the EU appeared first on Cross-Border Magazine.