EU's McGrath Talks Shein Probe, Consumer Protection

Summary

Podcast Summary: Bloomberg Talks

Episode Title: EU's McGrath Talks Shein Probe, Consumer Protection
Date: November 11, 2025
Host: Bloomberg (Stephen)
Guest: Michael McGrath, EU Commissioner for Democracy, Justice, Rule of Law, and Consumer Protection

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Episode Overview

In this episode, Bloomberg’s Stephen interviews Michael McGrath, the EU Commissioner for Democracy, Justice, the Rule of Law, and Consumer Protection. The conversation focuses on two primary areas:

1. The EU's new "European Democracy Shield" initiative aimed at protecting democracy from disinformation and interference.
2. The ongoing investigations and regulatory actions concerning large online platforms, with a particular focus on consumer protection issues in relation to Chinese e-commerce giants like Shein and Temu.

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Key Discussion Points & Insights

1. Protecting European Democracy

[00:22 - 03:57]

• European Democracy Shield Initiative:
  • The EU is set to adopt the European Democracy Shield, targeting threats of disinformation and interference in electoral processes.
  • McGrath emphasizes, "We’re looking to protect one of the most precious things we have in the European Union and that is our democracy." (00:51)
  • The initiative will include establishing the European Centre for Democratic Resilience, first outlined by President von der Leyen.
  • Pillars of the initiative:
    • Investment in free, independent, and plural media.
    • Support for civil society.
    • Promotion of media and digital literacy, arming citizens with skills to "navigate what is a very complex information environment" (01:37).
  • The goal is to ensure “citizens can exercise their democratic entitlement in free and fair elections... not subject to any interference.” (00:57)
• Combating Foreign Influence and Social Media Regulation:
  • Not just about Russia—addresses all forms of interference.
  • The plan will complement current laws, notably the Digital Services Act (DSA) and the incoming AI Act.
  • The new centre will "coordinate the work...to monitor, to detect and to respond to any incidences of foreign information manipulation, interference and disinformation.” (03:04)
  • Focus remains on “ensuring that our citizens own our democracy.” (03:49)

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2. EU-China Relations and Consumer Protection

[03:57 - 10:32]

• China Trip & Tech Security Concerns:

  • McGrath’s recent visit to China centered on “consumer protection and product safety…with a number of ministers...and companies directly as well.” (04:29)
  • He acknowledges an unbalanced trade relationship and EU’s dual view of China: "a partner, but also a systemic rival and indeed a competitor." (04:53)
  • On possible bans (Huawei, ZTE), McGrath deflects comment as it isn’t in his portfolio.

• E-Commerce Platforms - Shein and Temu Investigations:

  • Discussion shifts to France’s investigation into illegal products on Shein and concerns with Temu.
  • The European Commission “will not tolerate” illegal or unsafe products. (05:52)
  • Message to platforms: “If you want to sell into the European market...you must respect EU consumer protection rules and...product safety standards as well. Non-compliance is not an option.” (06:17)
  • Cites reports of “childlike sex dolls” found on some platforms as “completely unacceptable and we will not tolerate that.” (06:39)

• Ongoing and Potential Actions against Shein:

  • “There are already actions underway,” both at the French and EU level under the DSA. (07:08)
  • McGrath emphasizes due process and powerful EU instruments to ensure non-complying products "have no place in the European market." (07:32)

• Suitability and Strengthening of the Digital Services Act (DSA):

  • McGrath describes the DSA as a “very powerful tool”, but argues that broader consumer protection law also needs strengthening. (07:58)
  • Proposes giving the Commission more investigative and enforcement powers beyond just the DSA and large platforms, as national authorities' resources and responses vary. (08:25)
  • "We do need to have a stick where EU rules are being broken because consumers have to be protected and product safety is not just a bureaucratic obligation. It's about protecting EU citizens from real harm." (09:28)

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3. Enforcement Outcomes and Speed

[09:53 - 10:32]

• Stephen raises concern about the apparent lack of formal outcomes from the numerous ongoing DSA probes.
• McGrath assures: “There will be results and the results will emerge quite shortly...we do also have to ensure that it comes to a conclusion. And I believe that a number of them will shortly.” (10:04)

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Notable Quotes & Memorable Moments

• On Democracy:

  "We’re looking to protect one of the most precious things we have in the European Union and that is our democracy."
  — Michael McGrath, (00:51)

• On Digital Literacy:

  “It's also about supporting our civil society, but also ensuring that our citizens are given the tools that they need to navigate what is a very complex information environment at the moment.”
  — Michael McGrath, (01:32)

• On Engagement with China:

  “China is a partner, but also a systemic rival and indeed a competitor of the European Union.”
  — Michael McGrath, (04:53)

• On E-Commerce Platform Accountability:

  “If you want to sell into the European market...you must respect EU consumer protection rules and indeed our product safety standards as well. Non compliance is not an option."
  — Michael McGrath, (06:17)

• On Enforcement:

  “We do need to have a stick where EU rules are being broken because consumers have to be protected and product safety is not just a bureaucratic obligation. It's about protecting EU citizens from real harm that can...actually lead to death.”
  — Michael McGrath, (09:28)

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Timestamps for Key Segments

• European Democracy Shield Overview: 00:22 - 03:57
• China Relations & Trade Security: 03:57 - 05:28
• E-Commerce Platform Investigations (Shein/Temu): 05:28 - 07:50
• Strength of EU Consumer Regulation: 07:50 - 09:53
• On DSA Investigation Outcomes: 09:53 - 10:32

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Tone and Style

The conversation remains formal and policy-focused, with McGrath emphasizing transparency, the need for robust enforcement, and a clear message to both international partners and large corporations: the EU is intent on safeguarding democracy and protecting consumers at all costs, and is poised to strengthen its regulatory framework to do so.

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Conclusion

This episode provides timely insights into how the EU is proactively defending democracy against interference, and how it is responding to evolving threats in the age of global e-commerce. McGrath's remarks made it clear that Europe aims to assert strong leadership and coordination on both democratic resilience and consumer protection, with significant regulatory changes potentially on the horizon.

Transcript

[A]

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[B]

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[A]

News so in the coming days, the European Union is set to move forward with its plan for a European Democracy Shield, an initiative designed to counter foreign disinformation and interference ference. Joining me now to discuss the ease Commissioner for democracy, justice, the rule of law and consumer protection. Michael McGrath is with us in the Brussels studio. Commissioner, good morning. Good to see you.

[B]

Good morning, Stephen.

[A]

Let's talk about the goals of this project. The details are going to the commission to be adopted tomorrow. What exactly are you trying to combat with the Democracy shield? Is this just about Russia?

[B]

We're looking to protect one of the most precious things we have in the European Union and that is our democracy. It has been hard won. There are many member states of the European Union that just 35 years ago were not democracies. We need to ensure that our elections are free and fair and that they are free from any external or indeed internal interference. And fundamentally, what we are seeking to achieve here is that European citizens can exercise their democratic entitlement in free and fair elections and in a manner that is not subject to any interference. And so that's why we will be proposing, for example, the European Centre for Democratic Resilience that President von der Leyen first announced in her State of the Union address back in September. And we'll be fleshing out in a little more detail tomorrow when we publish the proposals, the precise role of this new centre. But overall, it is going to be a multifaceted approach because we have to protect the foundations of democracy. That means investing in a free and independent and plural media sector. Sector. It's also about supporting our civil society, but also ensuring that our citizens are given the tools that they need to navigate what is a very complex information environment at the moment. So, investment in media literacy, digital literacy, supporting our citizens in accessing the information that they need to make up their own mind about who they wish to have represent them at a local, national and indeed a European level.

[A]

And will it be a plan with teeth? I mean, we're talking about, you know, information that can be spread across, for example, social media. Is this something that's going to lead to more European regulation against social media platforms?

[B]

Well, we already have an extensive body of regulation and a toolbox there that we can use. For example, the Digital Services act imposes quite strict obligations on the in scope platforms in relation to protecting electoral integrity and making sure that the content that is disseminated on their platforms does not in any way impact negatively on the integrity of the electoral processes within the European Union. We also have the AI act which is progressively coming into force. So what we are going to propose tomorrow will very much complement the existing legislative toolbox that we have, but it will provide more capacity and bandwidth. And what this new centre will do essentially is, is coordinate the work that is happening between the EU institutions, the member state authorities and other stakeholders to monitor, to detect and to respond to any incidences of foreign information manipulation, interference and disinformation. So we look forward to rolling this out. And it is fundamentally about ensuring that our citizens own our democracy and that they can exercise their franchise in a free and fair manner.

[A]

Okay, turning to other issues now. You're just back from a trip to China. There's plenty to talk about in the EU China relationship. But I just wondered, given the story that we're reporting this morning about the European Commission considering forcing member states to phase out the use of technology from the Chinese companies Huawei and zte. I know this isn't specifically something that relates to your portfolio, but do those security concerns, I mean, are they weighing heavily on the Chinese relationship? Does this speak to the EU tightening the screws on some of the relationship with China?

[B]

Look, we want to have a positive relationship with the Chinese authorities. I had a very good visit there last week where the focus was on consumer protection and product safety and where I engaged directly with a number of ministers in the Chinese government, with the authorities and indeed with companies directly as well. And it's part of an overall relationship between the EU and China. We have a trading relationship at the moment that is quite unbalanced in favor of China. So that's why issues like market access barriers for European companies within the Chinese market is a key issue for us. China is a partner, but also a systemic rival and indeed a competitor of the European Union. And so my visit was building on the summit that took place back in July that President Von der Leyen attended in China. And the issue that you've raised is not something I can comment on in any detail because no decision has been made.

[A]

Okay, well, speaking, you are the first commissioner to go to China since that summit in July as well. And since then we've had developments particularly relating to E commerce platforms. We're looking at the investigation happening in France in relation to illegal products being sold by Sheehan. They've also been Looking at Temu as well. What is the EU going to do about France's complaint when it comes to Shein? That's something they've written to, to the EU about.

[B]

We're in very close contact with the French authorities. We have at an EU level, quite a powerful set of tools already. And there are ongoing actions against a number of the e commerce platforms, including those that you mentioned. So there are clear obligations under the Digital Services act in relation to the dissemination of a legal product online. And we're not going to tolerate that within the European Union. The overall message is if you want to sell into the European market, and it's a very lucrative and a very good market for e commerce platforms to sell into, you must respect EU consumer protection rules and indeed our product safety standards as well. Non compliance is not an option. And that was the clear message that I conveyed in my visit last week to China. So the report that emerged last week of these childlike sex dolls that were available on at least one, and I understand more platforms is something that is completely unacceptable and we will not tolerate that within the European market.

[A]

Will there be new action against Shein over that?

[B]

Well, there are already actions underway and the French authorities have launched their own investigation and we are remaining in contact with them. But already at an EU level, there is an action underway in the context of the DSA relating to illegal products on the platform. And so that has to take its course and it will do. But we have powerful instruments. We stand ready to use them. We have to allow due process and allow counterparties the right to respond and to address any claims that we're making. But we will bring this to a conclusion and we will ensure that such products have no place in the European market and will not be countenance.

[A]

Is the Digital Services act strong enough to help deal with e commerce platforms? Is it adapted to dealing with those particular type of companies?

[B]

The Digital Services act is a very powerful tool and we are using, is my view that the main body of consumer protection law that we have within the European Union, that's the consumer protection regulation as such, that we do need to strengthen that. We need to give the Commission a greater role in investigating and enforcing consumer protection laws more generally, because the DSA only covers certain Insco platforms and then it only covers them to the extent of the reach of the consumer protection element within the dsa. There's a wider body of consumer protection law which currently falls to the national authorities to implement and there are different capacities, to be frank, around the European Union on that. Question. And that's why I am proposing that the European Commission would take on a greater role and be given more teeth to take on these issues, not just against the very large platforms, but against any other e commerce retailers that flout the EU rules.

[A]

Because are you seeing some of those platforms being able to get around national authorities?

[B]

Well, the national authorities have different capabilities and they are resourced to a different extent. And at the moment, where there is a coordinating coordinated CPC action, consumer protection cooperation action, we coordinate it centrally within the Commission, but it is led by the individual national authorities. And very often the outcome is that the harm is stopped rather than there being an actual penalty and a disincentive to repeating such behaviour in the future. And I think we do need to have a stick where EU rules are being broken because consumers have to be protected and product safety is not just a bureaucratic obligation. It's about protecting EU citizens from real harm that can, that can actually lead to death.

[A]

Because there is a question of some of the investigations that have been launched into the dsa. There's a series of them against those big platforms and still no formal outcomes. Should we be expecting results from those investigations soon?

[B]

There will be results and the results will emerge quite shortly. We do have to ensure that due process is followed because as night follows day, any adverse finding by the European Commission against an in scope platform under the DSA is going to be most likely challenged. And we have to make sure that our process is robust. But we do also have to ensure that it comes to a conclusion. And I believe that a number of them will shortly.

[A]

Okay. Michael McGrath, you, Justice Commissioner, thank you very much for joining us in studio this morning to discuss all of those various issues.

[C]

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