New Delhi, Feb. 19 -- European Union regulators are investigating Shein over concerns the online retailer hasn't done enough to limit the sale of illegal products or protect users from the platform's allegedly addictive design.

The 27-nation bloc's executive arm said Tuesday that it opened formal investigation under the bloc's sweeping rulebook known as the Digital Services Act, which requires the biggest online platforms to take extra steps to protect internet users from dodgy products.

Shein may be required to alter its actions, or pay a hefty fine if a so-called non-compliance decision is reached following an in-depth investigation, the European Commission said.

One area its investigation is focusing on is whether Shein has the prop...