A PYMNTS Company

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

By  |  March 27, 2024
Amazon

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.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    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