The European Union’s top court upheld EU regulators requirement regarding online advertising under the Digital Services Act (DSA). Despite Amazon’s objections, the Court of Justice of the European Union (CJEU) ruled that EU interests outweighed the online retailer’s concerns.
Designated as a very large online platform (VLOP) under the DSA, Amazon faced stringent regulations aimed at combating illegal and harmful content on its platform. However, the company contested a DSA requirement mandating the public disclosure of detailed information on its online advertising practices.
Initially, a lower tribunal granted Amazon’s request to suspend the contested obligation temporarily. This decision prompted the European Commission to seek intervention from the CJEU. Despite Amazon’s argument that the requirement infringed upon its fundamental rights and business freedom, the CJEU dismissed its application for an interim measure.
The CJEU emphasized that suspending the requirement could delay the attainment of the DSA’s objectives potentially allowing an online environment threatening fundamental rights to persist. The judge asserted that the interests upheld by the EU legislature outweighed Amazon’s material interests leading to the rejection of the suspension request.
Expressing disappointment, Amazon maintained its stance that it does not meet the criteria of a VLOP under the DSA and should not be subjected to such designation.
The CJEU’s ruling reaffirms the EU’s commitment to regulating online platforms prioritizing the protection of fundamental rights and the integrity of the digital marketplace. This decision sets a precedent for the enforcement of tech regulations within the EU signalling a proactive approach to addressing challenges posed by online platforms like Amazon.
