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Bloomberg Talks

EU's McGrath Talks Shein Probe, Consumer Protection

11 Nov 2025

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.571 - 1.834 Stephen Carroll

Hi, I'm Stephen Carroll.

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2.135 - 9.09 Caroline Hepka

And I'm Caroline Hepka, here to introduce you to a podcast that brings you the news you need to start your day in just 15 minutes.

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9.431 - 19.474 Stephen Carroll

It's called Bloomberg Daybreak Europe Edition, covering all the top stories across Europe and around the world. Each weekday morning, we're up early to bring you the latest news by 7am.

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19.454 - 27.447 Caroline Hepka

We've got everything you need to know from geopolitics and global events to economics and what's moving markets. I'm covering it all from London.

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27.787 - 35.46 Stephen Carroll

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35.92 - 45.175 Caroline Hepka

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45.155 - 51.223 Stephen Carroll

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51.564 - 68.547 Caroline Hepka

Find new episodes of Bloomberg Daybreak Europe Edition by 7am London time on Apple, Spotify or wherever you get your podcasts.

68.898 - 85.606 Stephen Carroll

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. Joining me now to discuss the EU's 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.

Chapter 2: What are the main goals of the EU's European Democracy Shield?

414.049 - 428.353 Michael McGrath

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 clear.

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428.553 - 452.141 Michael McGrath

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 today. in my visit last week to China.

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452.681 - 477.765 Michael McGrath

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. Will there be new action against Xi'an over that? Well there are already actions underway and the French authorities have

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477.745 - 505.272 Michael McGrath

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

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505.252 - 516.183 Michael McGrath

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 countenanced.

516.323 - 523.39 Stephen Carroll

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?

524.231 - 549.94 Michael McGrath

The Digital Services Act is a very powerful tool and we are using it. It 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.

549.92 - 572.671 Michael McGrath

because the DSA only covers certain in-scope 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.

572.992 - 574.594 Michael McGrath

And that's why I am proposing...

Chapter 3: How does the EU plan to combat foreign disinformation?

574.574 - 586.943 Michael McGrath

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 float the EU rules.

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587.003 - 591.233 Stephen Carroll

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

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591.837 - 613.305 Michael McGrath

Well, the national authorities have different capabilities and they are resourced to a different extent. And at the moment where there is a 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 individually.

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613.285 - 637.234 Michael McGrath

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 happen.

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637.214 - 649.992 Stephen Carroll

that can actually lead to death. Because there is a question of some of the investigations that have been launched under 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?

650.013 - 675.076 Michael McGrath

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.

675.657 - 678.102 Michael McGrath

And I believe that a number of them will shortly.

678.122 - 684.535 Stephen Carroll

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

685.24 - 709.442 Tom Keen

This is Tom Keen inviting you to join me for the Bloomberg Surveillance Podcast. It's about making you smarter each and every business day. We bring you a recap of what happened overnight in Europe and Asia, the day's economic data, and complete coverage of the U.S. market open. We cover stocks, bonds, commodities, currencies, even crypto, all the information you need to excel.

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