Amazon Challenges EU Digital Services Act in Court
In a bold move, Amazon has become the first US company to challenge the European Union’s upcoming laws on online disinformation. The retail giant filed a petition with the general court in Luxembourg on Tuesday, seeking to annul its designation as a “very large online platform” under the EU’s Digital Services Act.
The Digital Services Act, set to take effect on August 25, aims to regulate big tech companies and their responsibilities in tackling disinformation. Under this act, 19 companies have been labeled as “very large online platforms” or “very large online search engines” due to their significant reach of at least 45 million monthly active users.
As a result of this designation, these companies are subject to additional obligations, including the policing of hate speech and disinformation. However, Amazon argues that it should not be classified as a “very large online platform” since it is primarily an online retailer rather than a social network or search engine. Furthermore, Amazon points out that other large retailers in the EU have not received the same designation.
“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,” stated an Amazon spokesperson. “We agree with the EC’s objective and are committed to protecting customers from illegal products and content, but Amazon doesn’t fit this description of a ‘Very Large Online Platform’ (VLOP) under the DSA and therefore should not be designated as such.”
Amazon emphasizes that the majority of its revenue comes from its retail business and that it is not the largest retailer in any EU country where it operates. It argues that the rules should not be applied to it in the same way as social media platforms or search engines.
While the European Commission declined to comment on Amazon’s specific case, a spokesperson highlighted that designated platforms and search engines must adapt their systems for compliance and complete annual risk assessments. The spokesperson also acknowledged that not all platforms pose the same risks and that social media platforms differ from marketplaces.
It remains to be seen how the court will respond to Amazon’s petition and whether it will impact the implementation of the Digital Services Act.