The Digital Services Act, which became law in 2022, is designed to compel major technology companies to more actively address illegal and harmful content circulating on their platforms. The VLOP designation, in particular, carries significant responsibilities, mandating companies to enhance their efforts in tackling illegal online content, implement robust risk management systems, undergo external and independent auditing, and share data with both authorities and researchers.
Amazon's legal challenge stems from its classification by the European Commission, which deemed the online retail giant a VLOP. Robert Spano, Amazon's lawyer, contended before the court that "Online marketplaces like the Amazon Store do not pose systematic risks. Second, the VLOP rules do not and cannot rationally assist in preventing the dissemination of illegal or counterfeit goods." He further asserted that "The VLOP rules therefore make no sense when applied to online marketplaces."
The company's argument posits that any risks associated with its platform are confined to individual customer interactions rather than posing a broader threat to its entire user base. Amazon maintains that even in instances of problematic products, their widespread exposure is minimal and is already adequately addressed by existing product safety and compliance regulations. Spano underscored this point by stating, "When it comes to marketplaces like the Amazon Store, size does not multiply risk. It is an arbitrary, disproportionate and discriminatory metric."
The General Court is expected to deliver its ruling on the case (T-367/23 - Amazon EU v Commission) in the coming months.
Amazon is not alone in challenging aspects of the DSA. Other prominent technology companies, including Meta Platforms (NASDAQ: META), the Chinese social media application TikTok, and German online retailer Zalando, have also initiated legal challenges against the DSA on various grounds, indicating a broader industry pushback against certain provisions of the comprehensive EU regulation. The outcomes of these cases will undoubtedly shape the future of digital regulation and the responsibilities of online platforms within the European Union.