EU "Platform Giants Must Disclose Advertising Data"... Amazon Loses Lawsuit

The world's largest e-commerce company, Amazon, lost a lawsuit on the 27th (local time) against the European Union's (EU) demand for disclosure of data related to online advertising. This ruling could further strengthen the EU's pressure on online platform giants.

According to major foreign media on the 27th (local time), the Court of Justice of the European Union (CJEU), the EU's highest court, dismissed Amazon's request for a temporary measure to suspend the application of certain provisions of the EU Digital Services Act (DSA).

The EU has been enforcing the DSA since August last year, aiming to prevent the spread of harmful content and misinformation. A total of 19 companies, including Amazon, were designated as 'Very Large Online Platforms (VLOP)' and subjected to stricter regulations. In particular, under the DSA provisions, VLOPs that fail to take corrective actions can be fined up to 6% of their annual global revenue. Amazon filed a lawsuit with the EU General Court in July last year, before the law was even enforced, requesting the cancellation of its VLOP designation, but a decision on this has not yet been made.

Amazon had requested the court to suspend the obligation for VLOP-designated companies to disclose an online advertising-related 'repository' until a final decision on the cancellation of the designation was made, citing violations of privacy rights and business interests. In September last year, the General Court partially accepted Amazon's claim and ruled to suspend the application of the repository disclosure regulation, but the European Commission appealed.

The CJEU panel ruled that "(if the regulation's application is suspended as in the lower court's decision) the achievement of the single market objectives for digital services could potentially be delayed for years," adding, "this could allow an environment that threatens fundamental rights to persist or worsen." The panel further explained that "the interests of the EU legislature take precedence over Amazon's material interests."

Since the court has sided with the EU from the early stages of the DSA's enforcement, pressure on large online platforms is expected to intensify. Amazon expressed disappointment over the ruling, maintaining its previous stance that "Amazon does not meet the VLOP criteria described in the DSA and should not be designated as such."