A PYMNTS Company

EU Court Upholds Tech Rules: Amazon Loses Battle Over Advertising Clause

 |  March 27, 2024

Amazon faced a setback on Wednesday as Europe’s highest court upheld a requirement concerning its online advertising under EU tech rules. The Court of Justice of the European Union (CJEU) sided with EU regulators, underscoring that the interests of the European Union outweighed those of the US e-commerce giant.

The decision stems from the Digital Services Act (DSA), which came into effect last year and designated Amazon as a very large online platform subject to stringent regulations aimed at combating illegal and harmful content on its platform, as reported by Reuters.

Amazon had contested a DSA provision mandating the disclosure of detailed information on its online advertising practices. Moreover, the company sought an interim measure until the court resolved the case.

Initially, a lower tribunal granted Amazon’s request for an interim measure to suspend the contested obligation in September. However, this move prompted the European Commission to escalate the matter to the CJEU.

Read more: Amazon Denies Monopolistic Threat in Mexico Amid Regulatory Scrutiny

The Luxembourg-based court set aside the suspension order and dismissed Amazon’s application for an interim measure. The judge highlighted Amazon’s argument that the obligation infringed upon its fundamental rights to privacy and freedom to conduct business, acknowledging its relevance.

However, the judge also pointed out the potential consequences of suspension, noting that it could lead to significant delays in achieving the objectives of the DSA. He emphasized that such a delay could allow an online environment posing threats to fundamental rights to persist or even intensify.

“The interests defended by the EU legislature prevail, in the present case, over Amazon’s material interests, with the result that the balancing of interests weighs in favour of rejecting the request for suspension,” the judge stated.

This ruling marks a crucial milestone in the ongoing battle between tech giants and regulatory authorities, particularly in the EU, where concerns over online content moderation and advertising practices have been mounting.

Source: Reuters