The General Court of the European Union has ruled that Amazon must adhere to stringent supervisory regulations after being classified as a “Very Large Online Platform” (VLOP) under the Digital Services Act (DSA). This decision mandates Amazon to align with the EU’s rigorous online platform rules, a judgment that refines how global tech entities align with regional policies.
Amazon challenged its VLOP designation, arguing that it infringes upon its business freedoms guaranteed by the Charter of Fundamental Rights of the European Union. The corporation contended that meeting DSA obligations would result in substantial costs, organizational complexities, and technological challenges, impacting its right to property use and resource management. Despite these arguments, the court dismissed Amazon’s claims, emphasizing that, though the rules are demanding, they do not hinder fundamental business operations. Further details of the ruling can be found in this report.
The court clarified that the DSA affects business administration rather than infringing on property rights. It highlighted the EU’s aim to mitigate systemic risks, superseding any potential interference with property rights. The qualifications for VLOP status include platforms with over 45 million monthly active users—approximately 10% of the EU’s population. This status imposes enhanced transparency, systemic risk assessments, and duties to combat disinformation and counterfeit goods. Currently, the European Commission has designated over 20 platforms with this status since 2022.
An Amazon spokesperson expressed the company’s intent to appeal the decision, emphasizing the view that the Amazon Store merely functions as a marketplace for goods, without engaging in the dissemination or amplification of information or opinions. In a similar context, the General Court recently rejected Zalando’s appeal concerning its VLOP status due to discrepancies in user number estimations by the European Commission.
This decision forms part of a broader EU strategy to ensure that large tech companies operate responsibly within the digital economy, balancing corporate interests with public welfare as noted in a Financial Times article. By reinforcing regulations, the EU aims to regulate major platforms effectively, setting a precedent for global digital governance.