Court rejects $575bn Amazon claim it is not a big firm

Amazon’s insistence that is not a large online platform – despite an annual turnover of $575bn – and therefore should not be subject to new EU rules, has been booted out by Europe’s top court, as Brussels chiefs ramp up their attack on tech giants.

The European Court of Justice decision is the latest move in what is fast becoming all-out war over the EU’s Digital Services Act, which is designed to ensure larger platforms comply with transparency and algorithm accountability, among other measures.

Although the Act came into force on January 1 this year, in April 2023, Brussels named a first list of 19 online platforms that had to comply by August 25 2023, including Amazon, Facebook, Instagram, LinkedIn, Pinterest, Snapchat, TikTok, X and YouTube.

Amazon had claimed that the DSA’s requirement to make its online advertisement library publicly available would hurt its fundamental rights to privacy and the freedom to conduct a business, adding that it would suffer “serious and irreparable harm”.

The company also contested the European Commission’s decision that it is a very large online platform that should face extra obligations to tackle illegal content such as counterfeit and dangerous products, and harmful content.

Amazon’s revenue for the 12 months ending December 31, 2023 was nearly $575bn (£458bn), a 11.83% increase year-on-year.

Court of Justice Vice President Lars Bay Larsen rejected the company’s request to suspend the DSA until its main legal challenge had been ruled on, saying this would delay the effect of the law “potentially for several years”, risking efforts to make online platforms safer.

An Amazon spokesperson reinforced its claim that it is not a very large online platform and should not have been designated as one.

The spokesperson said: “We are disappointed with this decision. Customer safety is a top priority for us at Amazon, and we continue to work closely with the [Commission] with regard to our obligations under the DSA.”

Last month, LinkedIn joined a list of 13 businesses that have already received a so-called “request for information” (RFI) – including Meta, X, TikTok and Alibaba AliExpress – which is the first step to ensure compliance with the DSA.

Companies that do not comply with the new obligations – which also cover illegal content/hate speech, child protection, election security and marketplace safety – risk fines of up to 6% of their global annual turnover.

In addition, the Commission can apply periodic penalties up to 5% of the average daily worldwide turnover for each day of delay in complying with remedies, interim measures, and commitments. As a last resort, the Commission can also request the temporary suspension of the service.

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