Amazon challenges European Commission VLOP designation

13/07/2023 | Pinsent Masons

Following in the footsteps of German fashion retailer Zalando, Amazon is taking legal action to have its designation as a Very Large Online Platform (VLOP) removed under the EU Digital Services Act (DSA). The company was one of the initial 17 firms to be listed as a VLOP, which means it has the potential to reach 10% of the EU's population or approximately 45 million individuals.

Amazon is arguing that the decision is discriminatory and violates the principle of equal treatment and fundamental rights. If Amazon is unsuccessful in getting the designation annulled, it has asked the Court of Justice of the European Union to disapply specific obligations under Articles 38 and 39 of the DSA.

Article 38 requires VLOPs to provide at least one option that is not based on profiling in their recommender systems, while Article 39 requires VLOPs that present adverts to compile a detailed repository of information that relates to the ads being presented and make it accessible to users.

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