Amazon Challenges ‘Very Huge’ Classification In European Contest
Following Zalando’s actions, Amazon has raised a legal protest regarding its category as a Very Extensive Online Platform (VLOP) in Europe. Amazon firmly acknowledges that it does not meet the criteria outlined in the DSA (Digital Services Act) for this classification.
This spring, the European Commission produced a list of 19 internet giants in the European Digital Service Act context. “very large online platforms and search engines are online services with over 45 million users in the EU”, wrote the European Union’s executive board.
The VLOP list features major online selling platforms, including AliExpress by Alibaba, Amazon, Booking.com, and Zalando.
Obligations
The classification introduces a range of information duties, including recommendations and advertisements, that should better protect users. Furthermore, the organizations concerned must examine their systemic risks, act accordingly in cases of infractions, and deploy advanced content control technologies for improved security.
Zalando’s objection
Zalando filed a complaint with the European Court of Justice two weeks ago regarding the classification. It claimed that the European Commission “did not take into account the majority retail nature of its business model and that it does not present a ‘systemic risk’ of disseminating harmful or illegal content from third parties.” The German corporation also questioned the VLOP inclusion criteria.
Amazon’s legal action
Amazon has now established a legal challenge against its inclusion at Europe’s second-highest court, the General Court in Luxembourg. “If the VLOP designation were to be applied to Amazon and not to other large retailers across the EU, Amazon would be unfairly singled out and forced to meet onerous administrative obligations that don’t benefit EU consumers,” an Amazon spokeswoman advised Reuters.
The corporation from the United States stated that it is not the biggest retailer in any of the EU nations where it works and that its leading contenders in these countries have yet to be designated as such. The corporation requested that the General Court cancel its designation.
