Europe’s top court rejects Amazon’s bid to suspend EU tech rule

On Wednesday, Amazon lost its battle to suspend a provision about its online advertising under EU tech rules after Europe’s top court supported EU regulators, saying EU interests overshadowed the U.S. online retailer’s material interests.

Under the Digital Services Act (DSA) implemented last year, Amazon was categorized as a very large online platform and subjected to stringent regulations aimed at addressing illegal and harmful content on its platform.

Legal Challenge and Interim Measure

Amazon contested a DSA requirement mandating the public availability of a repository containing detailed information on its online advertising. Additionally, the company sought an interim measure until the court reaches a decision on the case.

Court Ruling

A lower tribunal initially granted Amazon’s request for an interim measure to suspend the contested obligation. Subsequently, the European Commission appealed to Europe’s top court, the Court of Justice of the European Union (CJEU).

Dismissal of Interim Measure

The CJEU set aside the suspension order and rejected Amazon’s application for an interim measure. The judge highlighted that Amazon’s argument regarding the infringement of fundamental rights was not irrelevant. However, he emphasized that suspending the obligation could hinder the DSA’s objectives.

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Impact of the Decision

The judge noted that a suspension could delay the fulfillment of the DSA’s objectives, potentially allowing an online environment threatening fundamental rights to persist. Consequently, the interests defended by the EU legislature were deemed to outweigh Amazon’s material interests.

Amazon’s Response

Amazon expressed disappointment with the decision, maintaining that it does not fit the description of a ‘Very Large Online Platform’ (VLOP) under the DSA and should not be designated as such.