Court backs EU: Amazon fails in lawsuit against DSA classification

The European Union is allowed to classify large tech companies as “very large online platforms” and impose obligations on them. In a decision, the General Court of the European Union has now backed the EU. Amazon had fundamentally questioned the classification in a lawsuit in the context of the Digital Services Act (DSA). The US company saw the imposed obligations as an inadmissible interference with fundamental rights. For example, it claimed that freedom of business, the right to property, the principle of equality before the law, freedom of expression, freedom of information, the right to privacy, and the protection of confidential data had been violated (Case T-367/23).

The court did not agree with Amazon on any of these points and dismissed the lawsuit. This leaves the EU free to treat online platforms and search engines that have over 45 million users in the European Union differently from other companies with fewer users. The figure of 45 million is based on the total population; it corresponds to ten percent of the Union's population. Amazon itself is affected by the DSA, as its online store has been classified as a very large online platform. The company filed the lawsuit in July 2023.

Court: Protection against risks is legitimate

The EU did not make a mistake when it assumed that very large online platforms can pose risks to society, the court ruled. This could be the case, for example, through the dissemination of illegal content or the violation of fundamental rights, which also includes consumer protection. The special obligations of the DSA, such as the prohibition of profiling for recommendations in online shops or access for researchers to certain data, prevent these risks. The companies can be expected to incur significant costs for this. This does not constitute an interference with freedom of business.

Nor can there be any question of depriving companies of their property. Regarding the principle of equality, the special obligations were not chosen arbitrarily, as it cannot be denied that a platform with more than 45 million users has a significant influence. Regarding the prohibition of generating recommendations through profiling, consumer protection outweighs freedom of expression, which Amazon invokes.

Interventions are proportionate

The court acknowledged that the prescribed access for researchers to certain company data and the imposed transparency in advertising affect privacy and the protection of confidential information. However, here too, the DSA regulations are proportionate and serve the general interest of preventing risks to society and consumer protection. Since access to data is strictly regulated, this is also not considered an inadmissible interference.

Amazon can lodge a limited appeal on points of law against the court's decision within two months and ten days. Heise online has requested a statement from Amazon.

(mki)