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Amazon contests ‘very large’ qualification

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Following Zalando, Amazon has also lodged a legal objection against its classification as a Very Large Online Platform (VLOP) in Europe. “Amazon does not fit this description under the DSA”, the company states.

In the context of the European Digital Service Act (DSA), the European Commission published a list of 19 internet giants this spring. “Very large online platforms and search engines are online services with over 45 million users in the EU”, wrote the executive board of the European Union.

‘They must comply with the most stringent rules of the DSA.’

The VLOP list includes the names of online selling giants such as Alibaba’s AliExpress, Amazon, Booking.com and Zalando.

Obligations

The classification entails a number of information obligations that should better protect users, including recommendations and advertisements. Additionally, the companies involved are required to assess their systemic risks, act appropriately in case of violations and deploy better tools for content management.

Zalando’s complaint

Zalando filed a complaint against the classification with the European Court of Justice just two weeks ago. It argued that the European Commission “did not take into account the majority retail nature of its business model and that it does not present a ‘systemic risk’ of disseminating harmful or illegal content from third parties”. The German company also questioned the inclusion criteria for VLOPs.

Amazon’s legal challenge

Now Amazon has also launched a legal challenge against its inclusion, at the Luxembourg-based General Court, Europe’s second highest. “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,” an Amazon spokesperson told Reuters.

Amazon claims it would be ‘unfairly singled out’

The U.S. company said it is not the largest retailer in any of the EU countries where it operates and that its bigger rivals in these countries have not been designated as such. The company asked the General Court to cancel its designation.

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