Key Points:
- Europe’s top court ruled against Amazon’s attempt to suspend a requirement under the Digital Services Act regarding its online advertising.
- The Court of Justice of the European Union (CJEU) backed EU regulators, emphasizing that EU interests outweighed Amazon’s material interests.
- Amazon challenged the requirement to make detailed information publicly available, arguing that it infringed on fundamental rights and business freedom.
- The CJEU’s decision highlighted the potential harm to the objectives of the DSA if the suspension were granted, leading to the rejection of Amazon’s application.
In a significant legal battle, Amazon faced a setback on Wednesday as Europe’s top court ruled against its attempt to suspend a requirement related to online advertising under EU tech regulations. The Court of Justice of the European Union (CJEU) upheld EU regulators’ decision, stating that the interests of the European Union outweighed the material interests of the U.S. online retail giant.
The dispute arose from implementing the Digital Services Act (DSA), which categorizes Amazon as a very large online platform subject to stringent rules to combat illegal and harmful content on its platform. One requirement under the DSA mandates Amazon to disclose detailed information about its online advertising practices publicly.
Amazon contested this requirement and sought an interim measure to suspend it pending a final ruling on the case. While a lower tribunal initially granted Amazon’s request for an interim measure, the European Commission challenged this decision, leading to the involvement of the CJEU.
In its ruling, the CJEU overturned the suspension order and dismissed Amazon’s application for interim relief. The judge emphasized that Amazon’s argument regarding the infringement of its fundamental rights was not irrelevant but weighed against the potential harm to the objectives of the DSA.
The judge highlighted the risk of significant and irreparable harm to Amazon if the suspension were granted but also noted the potential delay in achieving the DSA’s objectives. Ultimately, the court determined that the interests defended by the EU legislature prevailed over Amazon’s material interests, leading to the rejection of the request for suspension.
In response to the ruling, Amazon expressed disappointment and reiterated that it does not fit the criteria of a ‘Very Large Online Platform’ (VLOP) under the DSA and should not be designated as such.
