The online commerce company Amazon has managed to lose, at least temporarily, its status as a “large online platform” in the eyes of the European Union, and more specifically within the framework of the Digital Services Law. This was announced by the General Court of the European Union in a ruling issued on September 27.
Although the company is one of the pillars of online sales, it has questioned its status as a “large online platform” governed by the Digital Services Law, the new European legislation that regulates online businesses. As Fábrica Digital states, this is a summary procedure, the objective of which is to protect interests while awaiting an official and concrete decision. Amazon made the first request on July 12.
Two problem points
Amazon raised two DSA points to argue its request. Initially, offering a non-personalized recommendation option would cause the company “a significant and irreversible loss of its market share, causing serious and irreparable damage,” the decision of the General Court of the European Union indicates. More precisely, it is about offering products for sale without relying on consumer preferences.
Secondly, the fact of having to publish “advertising references”, that is, documents relating to advertisers linked to the company and therefore confidential, would cause “serious and irreparable damage to its advertising activities and, by extension, to all its activities.” ”. .
To protect itself from these possible damages, Amazon has requested to cancel – initially suspend – its status as a “large online platform.” In fact, the latter are obliged to respect all the rules dictated by the Digital Services Law, in force in the European Union since last August.
Temporary decision
Since the suspension decided by the General Court of the European Union is only temporary, Amazon’s fate is not actually determined. At the moment, the General Court of the European Union has not specified whether the decision – current or future – will exempt Amazon from all rules prescribed by the DSA.
The case of Amazon, however, is not an isolated case: the online sales group Zalando made the same request shortly before, on June 27, but no decision has yet been made in this regard.
The Digital Services Act, which came into force on August 25, 2023, and also called “digital services regulation”, aims to ensure better cooperation between large digital companies and the Union, as well as better protect consumers against the risks associated with (scams, illicit content, theft of personal data, etc.). Currently, 19 online platforms are affected, such as TikTok, YouTube, Instagram, Facebook, Google Maps.
Source: BFM TV
