EU Court Rules in Favor of Amazon in Digital Regulation Dispute
In the initial stage of a legal dispute, Amazon.com Inc. emerged victorious against European Union regulators who had designated it as one of the Big Tech companies subject to increased scrutiny under the bloc’s stringent new regulations for content moderation.
In an order late Wednesday, the president of the EU’s General Court partially suspended the European Commission’s April ruling forcing Amazon to publish a detailed database of the ads it receives, including their content, brand or subject and who paid for them.
The move follows Amazon’s July challenge to the EU’s decision to label it a “very large online platform” under the Digital Services Act, alongside rival marketplaces such as Google Shopping and Alibaba. Shortly afterwards, a Luxembourg court issued a temporary injunction to suspend the EU’s decision entirely. Wednesday’s court order replaces the previous one.
“We welcome this decision as an important first step supporting our broader position that Amazon does not fit the description of a ‘Very Large Online Platform’ (VLOP) under the DSA and should not be designated as such,” Amazon said in an emailed statement. We look forward to working closely with the EC on Amazon’s other DSA obligations.”
The EU passed the landmark law last year as it saw the failure of powerful companies to crack down on illegal material on their platforms. The rules require online marketplaces like Amazon to track sellers on their platforms, add methods for customers to report illegal content and randomly test for illegal products.
