Good morning. The European Union opened an investigation into e-commerce company Shein, citing concerns about illegal products sold online and potential risks to users from the platform’s design.

• What the EU is charging: European authorities have started scrutinizing Shein after French regulators said they had found sex dolls resembling children listed for sale on the platform last year. Shein said at the time that the listings came from third-party retailers. Officials at the European Commission, the EU’s executive arm, sent the e-commerce giant a formal request for information in November in a bid to address the issue.
   
• What else is the EU looking at? The commission is also looking into whether there are risks stemming from what it describes as the potentially addictive design of Shein’s platform, and the transparency of its recommender system.
   
• Shein’s response: Shein said in a statement that it has invested significantly in recent months to bring the platform in line with the EU’s tech regulation.
   
• Potential fines: Companies can be fined up to 6% of their annual worldwide turnover for breaches of the bloc’s Digital Services Act, which obliges large platforms like online stores and social networks to do more to protect users from illegal or harmful content. They can also offer concessions to ease the regulator’s concerns and avoid a fine.

SEC should cut disclosure requirements for executive security, chair says.

Companies shouldn’t have to publicly disclose spending on security details for their executives, the head of the Securities and Exchange Commission said.

Currently, companies don’t have to report such spending when an executive is at work or traveling for business, while spending for at-home security teams or personal travel is considered a perk so it is disclosed. Eliminating the requirement to disclose that spending would reflect a new reality in which a constant security presence is a necessity for top corporate brass, SEC Chairman Paul Atkins said during a speech in Texas on Tuesday.

Why now? His proposal comes a little over a year after UnitedHealthcare Chief Executive Brian Thompson was killed, by alleged gunman Luigi Mangione in New York, prompting many companies to increase their security spending.

Spain to probe X, Meta, TikTok over AI images.

The Spanish government said it was requesting prosecutors to investigate X, Meta Platforms and TikTok for potential crimes against minors in relation to AI-generated images, ramping up scrutiny of how tech giants run their platforms as artificial intelligence becomes increasingly powerful.

A government minister said Tuesday that some 3 million AI-generated nude images, including depictions of minors, had proliferated online in just under two weeks and that Madrid was asking the public prosecutor’s office to look into potential offenses such as child pornography and the degrading treatment of minors.

• Irish Data Watchdog Opens Inquiry Into X Over Grok AI Images

• The U.S. Treasury Department pared back a rule requiring banks and other financial institutions to certify the beneficial ownership of accounts opened by existing customers, Risk Journal reports. 
   
• Stephen Colbert lashed out at the Federal Communications Commission and his own network during his show Monday night after CBS scrapped an interview he had planned with a Texas politician.
   
• The U.K. government on Monday called on industry to give its views on how financial sanctions regulations on ownership and control are applied in practice, reports Risk Journal, particularly around the concept of “hypothetical control.”
   
• French authorities arrested nine people, including two Louvre employees, for defrauding the museum of over $12 million.
   
• India’s Coast Guard has seized three tankers sanctioned by the U.S. that it says were involved in illicit ship-to-ship transfers off its western coast, a move that analysts said marks New Delhi’s first direct support of U.S. efforts to crack down on the so-called dark fleet.
   
• Activist investor Starboard Value plans to push for a shake-up of Tripadvisor’s board, stepping up pressure on management after taking a stake in the travel site operator last year.

Giorgia Meloni’s mission: Persuading Trump and Europe to be friends.

The U.S. under President Trump has lost trust across Europe, but Italian Prime Minister Giorgia Meloni is sticking with America.

Meloni is doing all she can to keep the troubled trans-Atlantic relationship alive. She has resisted European proposals to retaliate against Trump’s trade threats and called for the U.S. and Europe to deepen their ties. This weekend, she broke with most of the continent by pledging to join Trump’s Board of Peace—albeit only as an observer.

• Vice President JD Vance said Iran had failed to acknowledge core U.S. demands in talks Tuesday, after which Washington said it had agreed to give Tehran two weeks to close the gaps between the sides.
   
• The U.S. presented new seismic data Tuesday to buttress its recent allegation that China has secretly carried out low-yield nuclear tests, challenging Beijing’s insistence that it has scrupulously observed an international accord banning all nuclear detonations.
   
• The U.S. plans to deploy more advanced missile systems and other weapons in the Philippines to deter Chinese aggression in the South China Sea, the State Department said Tuesday, affirming a policy that has angered Beijing.
   
• Peru’s congress on Tuesday voted to oust the nation’s president, José Jerí, extending years of political upheaval in one of the world’s most important exporters of essential minerals.

Join us in New York on March 4 for the Dow Jones Risk Journal Summit. Speakers include Kaitlin Asrow, acting superintendent of the New York Department of Financial Services; Erika Brown Lee, head of global data privacy legal, Citi; Beth Collins, chief compliance officer, Walmart; Indrani Franchini, chief compliance officer, IBM; and Kevin O’Connor, general counsel, Lockheed Martin.

Request a complimentary invitation here using the code COMPLIMENTARY. Attendance is limited, and all requests are subject to approval.

• The Rev. Jesse Jackson, a longtime civil-rights activist and Democratic political leader, has died. He was 84.
   
• Mayor Zohran Mamdani proposed raising New York City property taxes by nearly 10%, having failed so far to persuade New York Gov. Kathy Hochul to increase taxes on corporations and the wealthy.
   
• A new political effort supported by the Google co-founder Sergey Brin and other Silicon Valley magnates is backing several ballot-measure campaigns aimed at undercutting a proposed wealth tax on California billionaires.
   
• Japan is planning roughly $36 billion in U.S. investments spanning critical minerals, oil and gas infrastructure and power generation as part of a $550 billion strategic trade and investment agreement.
   
• U.S. oil production reached a record 13.6 million barrels a day last year, defying predictions of decline despite low crude prices.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com, Mengqi Sun at mengqi.sun@wsj.com and Richard Vanderford at richard.vanderford@wsj.com.

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