The General Court of the European Union ruled on Wednesday that US retail giant Amazon must comply with Europe’s strictest online-platform rules following the company’s designation as a “Very Large Online Platform” (VLOP) under the Digital Services Act (DSA).
Amazon claimed that its VLOP designation infringed on fundamental rights guaranteed under the Charter of Fundamental Rights of the European Union, such as the freedom to conduct a business. The company argued that obligations under the DSA may entail significant costs, complicate company structure, and impose hurdles than require complex technical solutions. It further asserted that these obligations encroach upon its right to property, as they substantially affect the use and management of its economic resources.
However, the General Court dismissed Amazon’s arguments. Regarding the company’s business freedoms, the court acknowledged that the imposed rules are strict, but held that the interference did not obstruct freedoms central to business-operation.
The court also found that DSA obligations primarily burden business administration, not property rights, and that VLOPs maintain ownership and control over their services. The court added that even if DSA substantially interfered company property rights, the EU legislature’s stated goal of preventing systemic risks overrides such interference.
Platforms that exceed 45 million active users per month, or 10 percent of the EU’s population, receive VLOP status. Because of their size and reach, these large companies are subject to heightened regulation, including supervisory fees, heightened transparency requirements, systemic risk-assessment and reporting, and imposed duties to curb disinformation and counterfeit goods. The European Commission has designated at least 20 online platforms as VLOPs since 2022.
An Amazon spokesperson stated the company intends to appeal the decision in the next two months.
“The Amazon Store, as an online marketplace, does not pose any such systemic risks; it only sells goods, and it doesn’t disseminate or amplify information, views or opinions,” an Amazon spokesperson said.
On September 3, the General Court dismissed online fashion retailer Zalando’s appeal of its VLOP designation. The court rejected company claims that its user numbers were far lower than European Commission estimations.