EU General Court rejects Amazon’s appeal over very large platform designation

Sarhan Basem
Credit: Getty Images

Luxembourg (Brussels Morning Newspaper) – The EU’s General Court on Wednesday rejected Amazon’s appeal against being subject to the bloc’s regulations for large online platforms, confirming that the company must comply with its strict rules.

“Amazon’s action against the (European) Commission’s decision designating the platform Amazon Store as a ‘very large online platform’ is dismissed,”

the General Court ruled.

Amazon filed an appeal against the European Commission’s 2023 decision to place its marketplace under the strictest regulations of the EU’s Digital Services Act (DSA), which are applicable to so-called very large online platforms (VLOPs).

Online services must reach at least 45 million monthly EU users in order to be classified as a VLOP; the Commission determined that Amazon’s marketplace met this requirement.

How does Amazon argue it differs from other platforms?

Amazon contends that since the DSA regulations are designed to reduce the risks associated with services that distribute information and opinions and are funded by advertising, the company is not the kind of online platform for which they were developed because it is a retailer of consumer goods.

Amazon contested the ruling, claiming that the DSA’s most stringent regulations, including those pertaining to transparency, cooperation, and data access, violated the company’s fundamental rights, including its ability to conduct business in the EU.

The company accused European institutions of violating a number of rights protected by the European Union’s Charter of Fundamental Rights, including the freedom to conduct business, the protection of confidential information, and the freedom of expression and information.

Why did the court deem the DSA restrictions justified?

Amazon disputed the legality of imposing

“specific obligations of transparency, cooperation, and access to data,”

according to the General Court, the lower house of the Court of Justice of the European Union.

The court stated that although the regulations restricted some liberties, such as the ability to conduct business and possibly the right to free speech, this was “justified” due to the goals of the legislation.

Why is the EU probing Amazon’s cloud services under the DMA?

Moreover, under the Digital Markets Act (DMA), the European Commission launched market investigations into cloud computing services provided by Microsoft and Amazon a day earlier.

In order to ascertain whether Amazon Web Services acts as a gatekeeper for its cloud services, it announced the opening of two investigations.

To determine whether the DMA can successfully combat anticompetitive behaviour in the cloud computing industry, a third inquiry was also initiated. Recent research on cloud markets indicates that Amazon Web Services is well-liked by both consumers and businesses, according to the EU Commission. The Commission will assess whether specific elements of the cloud industry could improve Microsoft Azure’s and Amazon Web Services’ positions.

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Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
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Sarhan Basem is Brussels Morning's Senior Correspondent to the European Parliament. With a Bachelor's degree in English Literature, Sarhan brings a unique blend of linguistic finesse and analytical prowess to his reporting. Specializing in foreign affairs, human rights, civil liberties, and security issues, he delves deep into the intricacies of global politics to provide insightful commentary and in-depth coverage. Beyond the world of journalism, Sarhan is an avid traveler, exploring new cultures and cuisines, and enjoys unwinding with a good book or indulging in outdoor adventures whenever possible.
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