Amazon loses battle against EU advertising rules

Understand the case

• The Digital Services Act (DSA), implemented last year, classifies Amazon as a very large online platform subject to strict rules to combat illegal and harmful content on its platform.
• The company challenged the DSA's requirement to make public a repository containing detailed information about its online advertising and also requested an interim measure until the court rules on the case.
• In September, a lower court agreed to the request for a provisional measure to suspend the contested obligation, prompting the European Commission to appeal to Europe's top court.

Court decision

• The Court of Justice of the European Union (CJEU), based in Luxembourg, annulled the suspension order and dismissed Amazon's request for an interim measure.
• The judge argued that Amazon's argument that the obligation unlawfully limits its fundamental rights to privacy and freedom to conduct business was not irrelevant.
• He also said that without the suspension, Amazon was likely to suffer serious and irreparable harm before any judgment overturning the Commission's decision.
• However, he stated that the suspension could have a detrimental impact on the DSA's objectives.

“The suspension would lead to a delay, potentially for several years, in the full achievement of the objectives of the Regulation on a Single Market for Digital Services and would therefore potentially allow an online environment that threatens fundamental rights to persist or develop,” said the judge.

“The interests defended by the EU legislature prevail, in the present case, over the material interests of Amazon, resulting in the balance of interests weighing in favor of rejecting the suspension request.”

Amazon's position

Amazon stated: “We are disappointed with this decision and maintain that Amazon does not fit the description of a 'Very Large Online Platform' (VLOP) under the DSA and should not be designated as such.”

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