EU court rules on Amazon's status as very large platform

A European Union court is to rule on Wednesday whether the online marketplace Amazon is subject to stricter rules under the bloc's rules for digital platforms.

The US business has filed a complaint against a designation by the European Commission as a so-called very large online platform under the EU's Digital Services Act (DSA).

The aim of the DSA is to enforce stricter oversight on leading online services and to protect users from illegal content on online platforms.

Other companies such as German fashion retailer Zalando, Google's shopping marketplace and Chinese retailer Alibaba are considered particularly large, meaning they must fulfil additional obligations.

Amazon argues that, as a retailer of consumer goods, the company is not the type of online platform for which the DSA rules were created as they aim to minimize the risks posed by services that disseminate information and opinions and are financed by advertising.

In addition, Amazon would be at a disadvantage if it were subject to stricter supervision than local retail competitors, the business said.

Zalando had previously tried unsuccessfully to challenge its designation as very large online platforms in court.

Under DSA rules, digital services are required to remove illegal content from their sites more quickly than was previously the case.

Very large platforms and search engines with more than 45 million active users per month are subject to particularly strict requirements, including the obligation to submit an annual risk assessment and propose countermeasures with regard to harmful content. They must also share data with authorities and researchers.

Wednesday's ruling by the Luxembourg-based General Court will not necessarily be final, as Amazon will be able to appeal the decision before the European Court of Justice.