European apex court dismisses Amazon’s plea to revoke ad clause requirement

Amazon in Europe: Europe's highest court ruled against Amazon's bid to suspend a requirement related to its online advertising practices, affirming EU regulators' stance that prioritises European interests over the objections of the American e-commerce giant.

The dispute arose from the implementation of the Digital Services Act (DSA), which applies stringent regulations to major online platforms like Amazon to combat illegal and harmful content on their platforms. Amazon contested a DSA provision mandating the public disclosure of detailed information regarding its online advertising practices and sought an interim measure pending a final court decision.

Initially, a lower tribunal granted Amazon's request for an interim suspension of the contested obligation. However, this decision prompted the European Commission to appeal to the Court of Justice of the European Union (CJEU).

In its ruling, the CJEU overturned the suspension order and rejected Amazon's application for interim relief. The judge acknowledged Amazon's arguments regarding potential infringement on its fundamental rights, including privacy and the freedom to conduct business. However, the judge highlighted the potential harm to the objectives of the DSA if the suspension were granted, highlighting the EU legislature's interest in upholding digital market regulations.

The judge highlighted that suspending the requirement could delay the achievement of the DSA's objectives, possibly allowing an online environment that threatens fundamental rights to persist or worsen. Consequently, the court ruled in favour of rejecting Amazon's request for suspension, prioritising EU legislative goals over the company's objections.

Responding to the ruling, Amazon expressed disappointment and reiterated its stance that it does not meet the criteria of a 'Very Large Online Platform' (VLOP) under the DSA and should not be subject to such designation.

(With Reuters inputs)