Key Points
- An EU court has rejected Amazon’s legal challenge against its designation as a “very large online platform.”
- This designation means Amazon is subject to the EU’s stricter online content rules under the Digital Services Act (DSA).
- Amazon had argued that as an online marketplace, it doesn’t pose the same risks as platforms that distribute information.
- The court disagreed, stating that marketplaces can also pose risks by disseminating illegal content and infringing on consumer rights.
The European Union’s General Court on Wednesday rejected Amazon’s request to have its designation as a “very large online platform” overturned. This designation means Amazon is subject to stricter requirements under the EU’s new online content rules.
Amazon had challenged the EU’s Digital Services Act (DSA), specifically the part that determines which online platforms are labeled as “very large.” These companies are required to do more to combat illegal and harmful content on their platforms.
The EU’s second-highest court sided with the EU, saying it was right to include marketplaces with more than 45 million users in this group, as they also pose a risk to society.
Amazon said it was disappointed with the ruling and plans to appeal. “The Very Large Online Platform status was designed to address systemic risks posed by very large companies with advertising as their primary revenue and that distribute speech and information,” the company said in a statement. “The Amazon Store, as an online marketplace, does not pose any such systemic risks; it only sells goods, and it doesn’t disseminate or amplify information, views, or opinions.”
However, the court disagreed. In its ruling, it stated that the risks come from “disseminating illegal content or infringing fundamental rights, including consumer protection.” The court said that imposing stricter rules on these platforms is justified, “even if they entail significant financial burdens for those platforms.”
The court also dismissed all of the other arguments made by the U.S. online retail giant. This ruling is a significant victory for the EU in its efforts to regulate Big Tech and hold major online platforms accountable for the content on their sites.
