The European Union’s General Court has upheld the European Commission’s designation of Amazon as a “very large online platform” (VLOP), effectively dismissing a legal challenge brought by the e-commerce giant. The ruling, delivered Wednesday, confirms the application of stringent regulatory obligations imposed under the Digital Services Act (DSA).
The DSA, a landmark piece of legislation aimed at regulating online platforms, mandates specific requirements for VLOPs – those serving over 45 million users within the EU. These obligations range from enhanced content moderation and risk mitigation to increased transparency and accountability.
Amazon’s lawsuit argued that the DSA measures constituted a disproportionate infringement on fundamental rights, citing concerns over freedom of enterprise, property rights, equality before the law, freedom of expression, freedom of information and the right to privacy and data protection. The Luxembourg-based court, however, acknowledged the inherent limitations on these rights but concluded that the obligations imposed were justified by the need to address systemic risks stemming from large online platforms.
Specifically, the court emphasized the necessity of mitigating the spread of illegal content and safeguarding fundamental rights, pointing to the potential for VLOPs to exacerbate existing societal problems. The ruling validated the measures outlined in the DSA, including requirements for non-profiling recommendation options and researcher access to specific data sets, deeming them proportionate and aligned with an overarching public interest.
While upholding the legality of the classification, the decision highlights a growing tension between the right to operate freely and the imperative to protect consumers and safeguard democratic principles in the digital realm. The Court’s reasoning implicitly recognizes the potential for powerful online platforms to wield significant influence and the need for regulatory intervention to balance commercial interests with the broader societal good. Critics, however, may argue that this continued expansion of regulatory power could stifle innovation and further burden large corporations. The case’s outcome reinforces the EU’s commitment to assertive digital governance and signals a potentially transformative period for the operations of major online platforms within the bloc.
