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EU Proposes €2 Fee on Low-Value Parcels, Posing Challenge for Shein and Temu

The European Union is preparing to introduce a €2 ($2.27) handling fee on low-value e-commerce parcels entering the bloc, a move that could significantly impact fast-growing Chinese platforms like Shein and Temu. The measure is aimed at addressing a surge in online orders and leveling the playing field for European retailers.

In 2024, EU customs authorities processed 4.6 billion low-value parcels — double the figure from 2023 — with 91% arriving from China. The proposed fee, still pending approval by EU member states and the European Parliament, would be paid by the online retailers, not by consumers.

The European Commission said the fee would help fund compliance checks on the flood of packages, including regulations around toy safety and consumer protections. A smaller fee of €0.50 is also proposed for goods processed through EU-based warehouses, potentially favoring global firms with advanced logistics over smaller retailers.

“It’s fair to ask Alibaba, Temu, or Shein to pay their fair share,” said Bernd Lange, Chair of the European Parliament’s trade committee. He noted the burden these shipments place on customs authorities and the need for proper enforcement.

France has already voiced support for the measure, while the EU had previously announced plans to end the duty-free status of goods under €150 — but not until 2028.

Reactions from European retailers have been largely supportive. Zalando welcomed the proposal and called for fast-tracking the removal of the €150 customs exemption. Germany’s HDE retail association also endorsed the fee as a step toward curbing unfair competition.

However, concerns remain. Allegro, a leading Polish e-commerce platform, warned that the €0.50 fee for goods processed in EU warehouses might unintentionally benefit larger global players, while smaller firms would bear the full €2 cost. “The implementation details will be crucial,” said Allegro’s regulatory manager Ewelina Stepnik-Godawa.

Chinese companies have yet to respond, though China’s foreign ministry urged the EU to maintain a “fair, transparent and non-discriminatory” environment for Chinese businesses.

The proposal comes just weeks after the U.S. scrapped its own de minimis rule allowing duty-free entry for goods under $800, reflecting a broader global shift toward tighter e-commerce trade regulation.

Allegro to Expand Parcel Locker Network by 2,500 Units in Poland in 2025

Allegro, a prominent e-commerce firm, plans to expand its parcel locker network by 2,500 units in Poland in 2025, focusing on increasing its share of parcels delivered through its managed services. This move aligns with Allegro’s strategy to gain more control over its logistics and reduce delivery costs.

In a post-earnings interview, Allegro’s Chief Financial Officer (CFO), Jon Eastick, emphasized the company’s commitment to enhancing its managed delivery methods, which provide more flexibility and lower average prices as the network expands. In 2024, Allegro’s delivery costs increased by 22.9% to 2.84 billion zlotys ($736 million), prompting the company to look for more cost-effective solutions.

Over the past few years, Allegro has ramped up its investment in logistics, co-financing delivery services with merchants through its loyalty program and rolling out its own network of parcel lockers. The company added over 1,000 lockers in Poland last year, bringing its total to 4,500 lockers, with an additional 500 lockers in the Czech Republic. Allegro has also introduced a new delivery program that assumes full responsibility for the delivery process. Initially partnered with Orlen, the program will soon include DHL.

By the fourth quarter, 24% of the company’s parcel volumes were managed through Allegro’s own services, and with price adjustments in 2025, Allegro expects its parcel lockers to be more cost-effective than the most expensive third-party suppliers by the end of the year.

This significant increase in logistics investment came as a surprise to analysts at Trigon brokerage, who speculated that it could impact InPost, a parcel locker company with which Allegro has a seven-year partnership. The potential for Allegro to reduce its reliance on InPost in the future may affect InPost’s market share once the agreement expires in 2027.

Despite this, Eastick reassured that Allegro maintains strong relations with InPost, though it is exploring alternative, cost-efficient options for consumers. Following the news, InPost’s shares dropped by 5.9%.

Allegro’s Ceneo Sues Google for $568 Million Over Antitrust Claims

A subsidiary of Polish e-commerce giant Allegro, Ceneo, has filed a lawsuit against Alphabet (Google’s parent company), Google Ireland, and Google LLC, seeking damages of 2.33 billion zlotys ($567.6 million). The lawsuit, filed on Monday, claims that Google’s preferential treatment of its own price comparison service in search results has harmed Ceneo’s business by undermining competition.

Ceneo, which operates a popular online price comparison service in Poland, argues that Google’s practices have caused substantial financial losses. According to Allegro, the damages comprise 1.72 billion zlotys for the losses sustained by Ceneo, along with about 615 million zlotys in interest payments, accruing from 2013 to November 29, 2024. Ceneo also seeks statutory interest on the total amount from the date of the lawsuit until the damages are paid.

In response, Google rejected the claims, asserting that its “Shopping remedy” has been successful in supporting a variety of retailers, brands, and comparison shopping sites across Poland and Europe. A Google spokesperson noted that the company was carefully considering its options.

This lawsuit is linked to a previous European Union antitrust case, where Google was fined $2.7 billion for abusing its dominance in the search engine market to favor its own price comparison service. The EU’s ruling in that case also aimed to curb Google’s market power and encourage fair competition in the sector.

In addition, the U.S. Department of Justice has called for Google to divest its Chrome browser and prevent the company from re-entering the browser market for five years, in an effort to limit its control over the digital ecosystem.