In a pivotal ruling, the European Court of Justice overturned a prior decision that granted Amazon temporary exemption from adhering to regulations outlined in the Digital Services Act (DSA). The ruling, delivered by Vice President Bay Larsen on Wednesday, mandates that Amazon, akin to other tech giants like Apple, Facebook, and Instagram, must maintain a publicly accessible repository of advertising data as stipulated by the European Union’s 2022 Digital Services Act.
Legal Reversal
The reversal comes after a previous ruling suspended the European Commission’s classification of Amazon as a “very large online platform,” effectively halting the enforcement of the Digital Services Act’s advertising provisions on the e-commerce behemoth. However, Larsen’s latest ruling sets aside this temporary reprieve, emphasizing that the European Commission was unfairly deprived of the opportunity to counter Amazon’s assertions in court.
Amazon Can’t Block DSA Ad Repository Requirements: Balancing Interests
Larsen underscored the necessity of balancing Amazon’s concerns over potential harm against the broader interests at play. While acknowledging the possibility of “serious and irreparable damage” to Amazon’s operations, the court stressed the importance of upholding EU legislative objectives aimed at ensuring a secure online environment and safeguarding fundamental rights.
Amazon Can’t Block DSA Ad Repository Requirements: Scope of Impact
Addressing Amazon’s objections regarding the disclosure of sensitive business information, the court noted that much of the data in question is already subject to public disclosure under existing EU laws. Moreover, the court highlighted that Amazon’s advertising activities constitute a relatively modest portion of its overall revenue, minimizing the direct impact of compliance with the DSA requirements.
EU Legislative Imperative
The ruling underscored the significance of Regulation 2022/2065 within the EU’s digital policy framework, emphasizing its role in fostering a safe and regulated online ecosystem. Failure to enforce the obligations outlined in the regulation, the court warned, could impede the achievement of crucial policy objectives and compromise fundamental rights enshrined in the EU Charter.
Implications for Amazon
Amazon, alongside other designated “very large online platforms,” faces heightened regulatory scrutiny concerning advertising practices, content moderation, privacy protections, and accountability measures. The court’s decision reaffirms the EU’s commitment to regulating tech giants to ensure a fair and transparent digital landscape.
