Rosalind Evans
Amazon is contesting the new digital regulations in the European Union (EU) that characterize it as a large online platform necessitating more rigorous examination. This move, coming ahead of the rules becoming operative next month, marks the first resistance by a Silicon Valley tech giant against these groundbreaking standards.
The e-commerce giant has brought a lawsuit to a prominent EU court. It maintains that it is unjustly labelled as a “huge online platform” within the expansive Digital Services Act implemented by the 27-country bloc.
Amazon, whose claim to the European General Court was made public on Tuesday, follows German online retailer Zalando in opposing the categorization, which had lodged a similar lawsuit two weeks earlier.
The Digital Services Act introduces new responsibilities for the largest tech companies to shield users from illicit content and untrustworthy products. Non-compliance could result in multi-billion dollar fines or prohibiting operating within the EU.
The regulations, set to be enforced from Aug. 25, are projected to aid Europe in retaining its position as a global pace-setter in efforts to control the power of social media firms and other digital platforms.
Among the 19 largest online platforms and search engines identified by the Digital Services Act, Amazon, headquartered in Seattle, will be required to regulate its services to guard European users against hate speech, misinformation, and other damaging online content.
The European Commission, the executive branch of the EU, refrained from commenting directly on the lawsuit, stating that it would defend its standpoint in court.
While Amazon asserts its support for the objectives of the Digital Services Act to address systemic online risks, it disputes the characterization as a “huge online platform” that primarily generates income through advertising and disperses “speech and information.”
“Most of our revenue is derived from our retail business, and we aren’t the biggest retailer in any of the EU nations where we operate,” stated the company.
Amazon argues that it has been “unjustly singled out” because none of the top retailers in each European nation where it operates has been similarly labelled as a huge platform.
The commission argued that the Digital Services Act’s coverage is precise. It is “designed to encompass all platforms exposing their users to content, including the sale of goods or services, which can be illegal.”
“Extensive user reach heightens the risks and the platforms’ duties to address them, whether for marketplaces or social networks,” it stated.
Zalando, a German online fashion platform, was the first to legally oppose the Digital Services Act. In its lawsuit last month, the company, retailing designer footwear and attire, argued it doesn’t represent a “systemic risk” of disseminating harmful or illegal content from third parties.
The resistance from Amazon and Zalando towards the new Digital Services Act signals the beginning of a complex legal battle over regulating digital platforms in Europe. As tech giants face increasingly stringent scrutiny under these new rules, it remains to be seen how the European court’s decision will impact their operational landscape and the broader narrative of digital regulation worldwide.
