Amazon Challenges EU’s Designation as Very Large Online Platform in Lawsuit
Amazon, one of the largest online platforms in the world, is taking legal action against the European Union (EU) over its recent designation as a very large online platform. The move comes after the EU named 19 online platforms and search engines that must comply with new rules aimed at protecting minors, addressing illegal content, and banning certain ads.
In April, the European Commission (EC) announced its adoption of the first designation decisions under the Digital Services Act (DSA). The EC identified 17 Very Large Online Platforms (VLOPs) and 2 Very Large Online Search Engines (VLOSEs) that reach a minimum of 45 million monthly active users.
The list included well-known companies such as Google, Facebook, Instagram, Amazon, Apple’s App Store, LinkedIn, and Twitter. These companies are required to adhere to various rules, such as providing users with information on why they are recommended certain content and granting them the option to opt out of recommendation systems. The regulations also prohibit the display of ads based on sensitive user information and the creation of profiles of children for ad-targeting purposes. Additionally, platforms must make it easy for users to report illegal content.
Amazon’s decision to sue the EU over its designation as a VLOP is surprising, especially considering its prominent position as an online retail giant. The company argues that its main business is retail, not advertising, and therefore, it does not fit the definition of a VLOP.
An Amazon spokesperson stated, The DSA was designed to address systemic risks posed by very large companies with advertising as their primary revenue and that distribute speech and information. The vast majority of our revenue comes from our retail business.
Furthermore, Amazon highlights that it has dedicated significant resources to protecting customers from illegal products, even without any legal requirements. The company also points out that there are already existing EU laws in place to regulate products. According to Amazon, the rules governing VLOPs should apply to other business models, not necessarily retail-focused platforms.
The European Commission responded to Amazon’s lawsuit, confirming that online retailers and social networks can be classified as VLOPs, regardless of their distinct business models.
Amazon’s legal challenge marks the first instance of a US firm suing the EU over the DSA rules. While the outcome of the lawsuit remains uncertain, it raises important questions about the classification of online platforms and the wide-ranging implications of such designations.
The case brings attention to the need for a balanced perspective regarding the regulation of online platforms. Striking the right balance between protecting user interests, preventing illegal activities, and promoting fair competition is crucial in the ever-evolving digital landscape. It is important that regulations are fair and reasonable, taking into account the unique characteristics of each platform and the diversity of business models.
As the legal battle unfolds, it will be interesting to see how the courts navigate these complex issues and determine the future of online platform regulation in the EU and beyond. Both Amazon and the EU will likely present their arguments, shaping the outcome of the case. With the growing influence of online platforms, finding the right approach to regulation is a pressing matter that requires careful consideration.
