The European Union’s General Court has upheld the European Commission’s designation of Amazon as a “Very Large Online Platform” (VLOP), decisively rejecting the online retailer’s legal challenge against the classification. The ruling, delivered Wednesday, marks a significant victory for the EU’s increasingly assertive regulatory approach to digital services and underscores the bloc’s willingness to scrutinize the power of tech giants.
The case revolves around the Digital Services Act (DSA), a landmark piece of legislation imposing stringent obligations on VLOPs – platforms serving more than 45 million active users within the EU. Amazon had argued that the DSA’s stipulations fundamentally violated several fundamental rights, citing concerns about entrepreneurial freedom, property rights, equality before the law, freedom of expression and information and the right to privacy and data protection.
The court acknowledged that the imposed obligations do represent an interference with these rights, but crucially maintained that this intrusion is justified by the need to mitigate systemic risks associated with large online platforms. These risks, according to the Luxembourg-based judges, include the unchecked proliferation of illegal content and broader infringements upon fundamental freedoms. The decision signals a recognition within the EU legal framework that the pervasive influence of platforms like Amazon necessitates regulatory oversight despite potential impacts on existing rights.
The court specifically validated the DSA’s measures, such as requirements for providing non-profiling recommendation options and enabling researcher access to specific data sets, deeming them proportionate and justified by a broader public interest. This confirmation highlights the EU’s determination to prioritize consumer protection and freedom of expression, even when confronting potential conflicts with commercial interests and concerns over data accessibility.
Critics will likely scrutinize the long-term consequences of this ruling, questioning whether the measures strike a delicate enough balance between regulatory oversight and the potential for stifling innovation or imposing undue burdens on businesses. Simultaneously, the decision establishes a clear precedent, signaling a sustained escalation in the EU’s regulatory scrutiny of dominant digital platforms and setting the stage for similar challenges from other tech companies in the future.