Amazon takes legal action against new EU rules

Amazon takes legal action against new EU rules

Amazon has decided to take its case to the Court of Justice of the European Union to challenge the EU's new legislative package on digital services.

Adopted last summer, the package requires major digital platforms to strengthen the rights of their users and reduce the risk of abuse.

The e-commerce giant disagrees with the European Commission’s decision to classify it as one of the largest online platforms. Online clothing and cosmetics shop Zalando also challenged the decision earlier.

Under the Digital Services Act (DSA), “very large online platforms” and “very large search engines” with more than 45 million monthly active users in Europe fall directly under the Commission’s supervision. They must be the first to comply with the requirements of the EU’s new digital legislation and have until 25 August to do so.

Amazon says it agrees with the aims of the DSA but that it wrongly falls within the priority target group. The multinational said in a statement on Tuesday that it did not fit the description and therefore could not be designated as such.

The fact that Amazon is described as a “very large platform” is the result of “discriminatory criteria” and a disproportionality that violates the principle of equal treatment, according to the US company.

Amazon adds that it is not the market leader in any of the EU countries where it operates and that national competitors such as Poland’s Allegro and the Bol.com of the Netherlands should also be covered.

In a reaction, the Commission says it will defend its approach in court and that Amazon is still required to comply with the law by the end of next month. Like Zalando and 17 other platforms and search engines, it will have to find ways of clearly explaining to its users why and how certain information is recommended to them.

Recommendations based on profiles should be able to be deactivated, while advertising based on sensitive personal information (ethnic origin, political beliefs and sexual orientation) will no longer be permitted.

Minors will benefit from additional protection: for example, advertising messages tailored to children will no longer be allowed.

The risk of disseminating illegal content also has to be minimised and companies need to allow independent investigations into their compliance with DSA rules.


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