Amazon gains advantage in EU court battle over new digital regulations

28-09-2023
PixelVortex
Amazon gains advantage in EU court battle over new digital regulations
The Amazon.com logo on a smartphone arranged in New York, US, on Tuesday, Sept. 26, 2023.
Gabby Jones/Bloomberg
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Amazon scores initial victory in legal dispute with EU over new content moderation rules. In a recent court ruling, Amazon.com Inc. has emerged as the winner in the first round of its legal battle against European Union regulators. The EU had included Amazon in a list of Big Tech companies that would face enhanced scrutiny under the bloc's stringent new content-moderation regulations. However, in a significant reprieve, the president of the EU's General Court has partially suspended the European Commission's decision that obligated Amazon to publish a comprehensive database of advertisements it receives, including details such as the content, brand name, subject, and the party responsible for payment.

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This development follows Amazon's challenge in July to the EU's decision to categorize it as a "very large online platform" under the Digital Services Act, alongside marketplaces such as Google Shopping and Alibaba. The court in Luxembourg had previously issued a provisional order completely suspending the EU's decision, and this latest court order supersedes that previous ruling.

In response to the court's decision, Amazon expressed its satisfaction, stating that it is an important first step in support of their belief that they do not fit the description of a "Very Large Online Platform" (VLOP) under the Digital Services Act and, therefore, should not be categorized as such. The company emphasized its commitment to working closely with the European Commission in fulfilling its obligations under the Digital Services Act.

The EU enacted the groundbreaking Digital Services Act last year in response to its perception of powerful firms' failure to effectively combat illegal content on their platforms. These regulations aim to hold online marketplaces like Amazon accountable for the activities of sellers on their platforms, including implementing mechanisms for reporting illegal content and conducting random checks to identify and remove illicit products.

This court victory for Amazon provides a significant advantage in its ongoing legal dispute and may help shape the future regulatory landscape for digital platforms in the European Union. As the case progresses, it remains to be seen how other tech giants and the EU regulators will respond, and how this ruling will impact the implementation of the Digital Services Act in relation to other major players in the online marketplace.