Amazon has taken legal action against being included in the group of companies that are subject to strict European Union (EU) online content regulations. This move by the tech giant is anticipated to encourage other major tech companies to follow suit. The legal challenge has been filed at the General Court, the second highest court in Europe, which is based in Luxembourg. It is significant to note that this is the first time a Big Tech company has taken such action. Just two weeks prior, German online retailer Zalando also sued the European Commission over the same matter.
The Digital Services Act (DSA)
The Digital Services Act (DSA), which came into effect last year, categorizes 19 online platforms and search engines as Very Large Online Platforms (VLOP) due to their user base of over 45 million users. The VLOP designation imposes additional responsibilities on these companies to combat illegal online content.
Amazon’s Response
An Amazon spokesperson stated that if the VLOP designation is applied to Amazon but not to other large retailers in the European Union (EU), it would result in unfair treatment towards Amazon and burden the company with excessive administrative obligations that do not benefit EU consumers. Furthermore, Amazon argued that it is not the largest retailer in any of the EU countries where it operates, and its larger competitors in these countries have not received the same designation. The spokesperson emphasized that Amazon does not meet the criteria to be classified as a Very Large Online Platform under the DSA and, therefore, should not be labeled as such.
Amazon’s Appeal to the General Court
Amazon has submitted a request to the General Court to overturn its designation as a VLOP. It remains to be seen how the EU executive will respond to this legal challenge.
Amazon’s legal challenge against the EU’s online content regulations marks a significant development in the ongoing battle between tech giants and regulatory bodies. By contesting its inclusion as a Very Large Online Platform, Amazon aims to highlight what it perceives as unfair treatment and excessive obligations. This move may encourage other major tech companies to take similar actions in the future. The outcome of this legal battle will undoubtedly have a substantial impact on the implementation and enforcement of online content rules within the EU.
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