Amazon.com Inc. is fighting the European Union’s decision to include it on a list of Big Tech firms facing extra scrutiny under the bloc’s tough new content-moderation rules.
The online retail giant filed a challenge at the Luxembourg-based EU General Court in a bid to topple the European Commission’s decision to label it as a “very large online platform” under the Digital Services Act alongside rival marketplaces such as Google Shopping and Alibaba.
“We agree with the EC’s objective and are committed to protecting customers from illegal products and content, but Amazon doesn’t fit this description” and “therefore should not be designated as such,” the company said in an emailed statement. The company’s plea argues that the designation is “based on a discriminatory criterion and disproportionately violates the principle of equal treatment.”
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The EU passed the landmark act last year, spurred by what it saw as a failure by powerful firms to combat illegal material on their platforms. The rules require online marketplaces like Amazon to trace the sellers on their platform, add methods for customers to flag illegal content and randomly test for illegal products.
Companies with more than 45 million monthly active users are deemed to be a “very large online platform” and must adhere to stricter criteria set out by the EU’s executive arm, including submitting risk assessments. The 17 companies designated as VLOPs, as well as the two designated “very large online search engines,” must comply with the rules by Aug. 25 or face steep penalties up to 6 percent of annual revenue.
The commission said it would defend its position in court and added that Amazon still must comply with the rules by end of August, regardless of the appeal.
“The scope of the DSA is very clear and is defined to cover all platforms that expose their users to content, including the sale of products or services, which can be illegal,” the commission said in an emailed statement. “For marketplaces as for social networks, very wide user reach increases the risks and the platforms’ responsibilities to address them.”
Amazon argues that it shouldn’t be considered a VLOP because the majority of its revenue comes from retail, rather than advertising. The company also argues that it is not the dominant retailer in any of the EU countries where it operates, and yet those other companies — national marketplaces like Poland’s Allegro or the Dutch Bol.com — haven’t been earmarked.
“If the VLOP designation were to be applied to Amazon and not to other large retailers across the EU, Amazon would be unfairly singled out and forced to meet onerous administrative obligations that don’t benefit EU consumers,” the Seattle-based company added in its statement.
Zalando SE, a German online fashion firm also targeted by the law, has already filed a suit, claiming the commission misinterpreted its user numbers and that the company also generates most of its revenue from retail rather than ads.
By Samuel Stolton, Peter Chapman and Jillian Deutsch
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