Amazon has lost its legal battle against the European Union’s Digital Services Act (DSA), with EU judges rejecting the tech giant’s claims that it shouldn’t be subject to the bloc’s strictest digital regulations.
The Ruling and Its Implications
The EU’s General Court in Luxembourg dismissed Amazon’s challenge, confirming the company’s designation as a Very Large Online Platform (VLOP). This status, applied to platforms with over 45 million monthly users, triggers heightened obligations under the DSA. These include more frequent reporting on illegal content and substantial supervisory fees paid to the European Commission. Amazon argued that its e-commerce platform does not present the systemic risks the DSA aims to address, and that imposing VLOP status violates fundamental business rights and confidentiality. However, the court ruled that all VLOPs, including marketplaces, are treated equally due to their potential for societal harm.
Why This Matters: The DSA and Systemic Risk
The DSA, enacted in 2023, is the EU’s attempt to create a safer digital environment. It’s designed to force large platforms to actively prevent the spread of illegal goods, services, and content online. The designation of Amazon as a VLOP is significant because it sets a precedent for how the EU will regulate major online marketplaces. The core idea is that platforms with massive reach can amplify harmful content or products at a scale that demands stricter oversight.
The EU believes that simply selling goods, as Amazon does, is not enough. The court has already rejected Amazon’s request to delay full implementation while the challenge was pending, and emphasized the importance of swiftly enforcing the law.
Amazon’s Response and Future Steps
Amazon has stated it will appeal to the EU’s Court of Justice. The company maintains that its marketplace does not pose systemic risks, as it only sells products and does not amplify information. The court dismissed Amazon’s concerns that making its advertising methods public would expose trade secrets, ruling that EU interests take precedence.
This decision reinforces the EU’s commitment to enforcing the DSA, even against powerful multinational corporations. The case highlights the growing tension between digital giants and regulators seeking to curb the harms associated with large-scale online platforms.
The next steps will depend on Amazon’s appeal. For now, the company remains subject to the DSA’s strictest requirements, which will likely increase compliance costs and scrutiny.
