Amazon wins court backing for now against EU tech rules' ad clause

BRUSSELS (Reuters) – Amazon has received temporary relief from EU tech rules that require it to provide researchers and authorities with access to its ad repositories. The rules, under the Digital Services Act (DSA), designate Amazon as a very large online platform (VLOP) and require it to disclose how ads are targeted. In response, Amazon took its case to the Luxembourg-based General Court, Europe’s second highest court. It requested an interim measure to suspend the DSA requirements until the Court rules on its challenge against the VLOP label.

The Court granted Amazon’s request for interim measures, stating that it only maintains the status quo for a limited period. Amazon welcomed the decision, seeing it as an important first step in challenging its classification as a VLOP. They argue that Amazon does not fit the description of a VLOP under the DSA and should not be designated as such. However, the Court dismissed the second part of Amazon’s application.

The case, officially known as T‑367/23 R, is between Amazon Services Europe Sarl and the European Commission. The Commission designated Amazon as a VLOP in April, along with 18 other platforms and search engines, as part of their efforts to regulate large tech companies. The DSA requires VLOPs to compile and make public an advertisement repository and provide users with an alternative to recommender systems based on profiling.

This ruling is significant for Amazon as it allows them to temporarily avoid compliance with the DSA requirements while their challenge against the VLOP label is being considered. It is part of a broader regulatory battle between tech giants and EU regulators, as the EU aims to assert more control over the digital sector and protect competition.

Reuters reports that other tech companies, such as Google and Facebook, are also challenging the VLOP designation. These companies argue that the classification is unfairly applied and does not accurately represent their business models.

The General Court’s ruling on Amazon’s case could set a precedent for how online platforms are classified and regulated in the EU. The final decision is awaited and will have far-reaching implications for both the tech industry and the EU’s regulatory efforts in this space.

(Reporting by Foo Yun Chee; Editing by Kirsten Donovan)