The European Commission asked Amazon to provide further details regarding the steps it has taken to adhere to its obligations under the Digital Services Act (DSA), a law requiring large companies to combat harmful content on their websites and establish standards for advertising transparency.
Amazon's DSA Compliance
According to Reuters, Amazon was instructed to provide comprehensive information on how it complies with the transparency requirements for recommender systems until July 26.
An Amazon spokesperson said the company was reviewing the EU's request and collaborating closely with the European Commission, as it shares the objective of establishing a secure, consistent, and trustworthy shopping environment.
The European Union's Digital Services Act
The European Union's comprehensive new digital privacy protection law took effect on August 25, marking a significant shift for Big Tech in Europe.
The Digital Services Act (DSA), introduced alongside the Digital Markets Act (DMA), was part of the European Union's comprehensive regulatory framework for big tech. Quartz reported that it mandates major technology companies take greater responsibility in addressing illegal and harmful content on their platforms.
While the DMA targets antitrust reform among major tech firms, the DSA prioritizes individual user protection and aims to prevent the spread of harmful content and misinformation online.
Companies that the EU identified as subject to the DSA include Amazon, Google, Alibaba, and Wikipedia.
Thierry Breton, the European Commissioner of the Internal Market, emphasized in a video posted to Twitter that the DSA aims to safeguard free speech from arbitrary decisions while protecting citizens and democracies against illegal content.
Amazon Trying to Overturn EU Compliance Last Year
Digwatch reported that last year, the European Commission classified Amazon Store as a Very Large Online Platform (VLOP) under the Digital Services Act (DSA), requiring it to make detailed online advertising data publicly accessible.
Amazon initially sought to overturn this decision in the General Court of the European Union and requested interim measures. As a result, the President of the Court temporarily suspended the requirement, prompting the Commission to appeal to the highest court in Europe, which is the Court of Justice of the European Union (CJEU), which later overturned the General Court's previous order and mandated Amazon to disclose its platform's advertisements information in a publicly accessible archive.
In the ruling, the Vice-President of the Court of Justice recognized Amazon's arguments that the EU law requiring public access to their advertising repository could infringe on their privacy rights and business freedom.
However, the judge concluded that delaying the Digital Services Act (DSA) objectives due to Amazon's appeal could hinder the regulation's goals of establishing a unified Digital Single Market, which might result in an online environment that compromises fundamental rights. Therefore, the judge determined that the EU's legislative interests outweigh Amazon's concerns, leading to the denial of the suspension request.
