Thanks to the EU: European REach of Online Giants Become Transparent The European Union’s Digital Services Act (DSA) has introduced a new era of transparency for online platforms, requiring those with over 75 million active monthly users in the EU to disclose their user figures twice a year, broken down by country. This data reveals fascinating insights into the online habits of Europeans and the role different platforms play across the region. Transparency REports shed a light on User Numbers By relating these user numbers to the internet-active population in each country, analysts can calculate the “penetration rate” — the percentage of internet users engaging with a platform at least once a month. This metric provides a clearer picture of a platform’s importance in specific markets. Amazon’s Uneven Footprint Among the Very Large Online Platforms (VLOPs), Amazon has long been the sole retail giant on the list. However, its influence varies significantly by country. For instance, 70% of internet users in Germany and 81% in Italy use Amazon monthly, making it a dominant player. In contrast, its penetration drops to 25% in Portugal and barely 10% in Poland. Interestingly, these figures are not static. Just six months ago, Amazon boasted a penetration rate of over 90% in Italy, while in Poland it hovered below 7%. While these fluctuations may reflect seasonal trends or reporting nuances, they also underline the challenges Amazon faces in consolidating its position in less-established markets. The inclusion of Chinese e-commerce platforms Temu and Shein in the DSA reports marks a turning point in understanding their European footprint. Temu’s Consistent Growth Temu’s penetration rate exceeds 20% across most EU countries, meaning about one in five EU internet users visits the platform monthly. Its relatively even spread suggests that Temu is approaching Europe as a unified market, deploying a standardized strategy across the continent. Shein’s Targeted Strategy In contrast, Shein has concentrated its efforts on specific “lighthouse markets” such as Spain, Italy, Portugal, and France, where it commands over 40% penetration. These are the same countries where Shein has already become the leading online fashion retailer, reflecting its focused investment in these regions. Meanwhile, Shein’s presence in markets like Germany and Poland remains comparatively modest. TikTok Shop: A Parallel Expansion Retailers are also closely monitoring the growth of TikTok Shop, which recently expanded to Ireland and Spain. Intriguingly, TikTok’s strongest markets in Europe often align with Shein’s: countries like Spain and Italy where both platforms are thriving. This overlap suggests these markets could become battlegrounds for social commerce. What’s Next? The DSA-mandated reports provide a rare glimpse into the competitive dynamics of the European online landscape. Amazon’s entrenched dominance, Temu’s pan-European approach, and Shein’s strategic focus illustrate diverse strategies for capturing market share in a complex region. As the data evolves, it will offer valuable insights into how platforms adapt to changing user preferences and regulatory landscapes. With expansion plans from TikTok Shop and growing competition among global players, Europe’s digital marketplace promises to remain a fascinating arena for innovation and rivalry. The next set of transparency reports will undoubtedly reveal even more about the shifting sands of online commerce in the EU.
