Amazon Challenges EU Very Large Online Platform Designation in Court

Amazon has challenged its classification as a Very Large Online Platform (VLOP) under the European Union's Digital Services Act (DSA), arguing before the EU General Court in Luxembourg that its online marketplace does not pose systemic risks warranting such stringent regulation. The company contends that the VLOP designation, which requires enhanced content moderation, risk management, and transparency measures, is inappropriate for Amazon's marketplace model, which primarily sells goods rather than disseminating information like social media platforms. Amazon's legal team emphasized that any risks are limited to individual customer interactions and are already addressed by existing consumer protection laws, while asserting that the DSA rules do not effectively target issues like counterfeit or illegal goods on marketplaces. The European Commission, however, maintains that Amazon's reach justifies the highest level of DSA obligations to combat illegal and harmful content. Consumer groups have supported the Commission's stance, highlighting the persistent presence of illegal products on Amazon's platform. The court's decision on this significant legal challenge is expected in the coming months, with other major platforms also contesting their VLOP status under the DSA.