Amazon loses court battle over EU tech rules on advertising

The highest court of the European Union upheld regulations under the Digital Services Act affecting Amazon's online advertising, reinforcing the EU's commitment to regulating tech giants for societal well-being.

By Raunak Bose
New Update
Amazon Loses Court Battle Over EU Tech Rules on Advertising

Amazon (Image via TechFirstNow)

In a recent judgment, the highest court of the European Union enforced regulations affecting Amazon’s online advertisements only to be met with the company’s objection. The move strengthens the intention of the EU to regulate the tech giants to promote the well-being of its citizens.

The Digital Services Act (DSA) which came into force last year, obliges big platforms including Amazon to apply strict regulation to illegal and detrimental content. Amazon challenged the rules and regulations related to DSA where the public needs to disclose the details of its online ad practice. Initially, Amazon wanted to evade this responsibility until the case was dismissed. Still, the lower court allowed the company’s request and the Commission addressed the Court of Justice of the European Union (CJEU).

Challenges and Legal Battles, Amazon's Objection to DSA Regulations

CJEU turned down the suspension and rejected Amazon's application for interim measures. The decision opinion recognized Amazon's worries regarding possible violations of its fundamental rights including privacy and freedom of commerce.

Nevertheless, DSA aims at safeguarding fundamental rights online and offline. The judge emphasized that issuing the injunction might hinder the full functionality of the DSA, as long as the negative virtual spaces will continue to exist. Ultimately, the EU concluded that the public security issues overruled Amazon's commercial priorities.

Court of Justice for the European Union (CJEU)
Court of Justice for the European Union (CJEU) (Image via Getty Image)

Subsequently, Amazon reacted by stating that it disagreed and did not fit the scope of the 'Very Large Online Platform (VLOP)' according to the DSA. However, the court's verdict is evidence of the EU's determination to prosecute technology companies for the effect of their activities on society.

Going ahead, Amazon has to be a part of DSA’s advertising transparency regulation that supervises market competition and ensures customers’ protection in the digital space. However, this choice of the EU may bring many challenges for Amazon and other tech companies. Nevertheless, it is another example of a proactive approach of the EU in regulating the digital arena which benefits its citizens.

Constantly changing technological conditions force agencies to constantly improve regulations and DSA is the one among them which ensures that the online environment is safe and transparent. Through observing and implementing the regulations, the EU embarks on a journey that aims to strike a balance between the promotion of innovation and protecting the rights of people and businesses as a whole.

The CJEU's decision not only reaffirms the EU's resolve to uphold strict regulations that check corporations and safeguard core freedoms but also serves as a model for international law to prove its suitability for digital-savvy consumers everywhere. Amazon might be discontented with the court ruling. However, such a decision is viewed as a step towards a secure, and fair online space where every player will be at par with.

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