The Court’s Ruling and Amazon’s Response
The European Union General Court has rejected Amazon’s appeal against its designation as a Very Large Online Platform (VLOP) under the EU Digital Services Act (DSA). The ruling confirms the European Commission’s decision that Amazon meets the criteria set forth by the DSA, subjecting the company to specific obligations aimed at increased transparency and accountability within the EU marketplace. Amazon announced its intention to pursue further appeals, expressing disagreement with the classification but acknowledging the court’s decision.
Understanding VLOP Designation and DSA
The Digital Services Act introduced the concept of Very Large Online Platforms to target major online services with significant reach in the EU. A platform qualifies as a VLOP if it has over 45 million active users monthly within the EU. VLOPs are subject to extensive governance requirements, including greater transparency regarding content moderation, systematic risk assessments, and providing regulators with access to relevant data. This designation reflects the EU’s goal to ensure platforms with substantial influence comply with rules promoting safer and fairer online environments.
Broader Implications for Platform Ecommerce
This ruling sets an important precedent for other substantial online marketplaces operating in the EU. Platforms like Zalando, already designated as VLOPs, face similar obligations, and this confirmation signals that regulators will maintain stringent oversight on companies meeting the DSA thresholds. Operators should anticipate increased compliance costs and operational adjustments to meet transparency and data-sharing requirements. The ruling signals a regulatory landscape that prioritizes accountability and may shape future policy developments across the platform ecommerce ecosystem in Europe.
