Taxes & Law

Digital Services Act: Amazon defends itself against stricter classification

Fatih-Kağan Taşkoparan

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The Digital Services Act (DSA) is intended to oblige large online platforms such as Alibaba and Zalando to take stronger action against illegal content on the internet. The EU Commission has designated a total of 17 companies as "very large platforms". classifiedwhich are to be subject to particularly strict regulations in future. Among them, Amazon was the first US company to file a lawsuit against the stricter regulation.

Stricter rules for the big players

The DSA applies to all digital services that connect consumers with goods, services or content and places them under a comprehensive new framework for transparency and accountability. To this end, the EU has identified 17 "very large platforms" and two "very large search engines". In future, they are to take stronger action against illegal content on the internet. To this end, the companies must establish a risk management system that carries out annual assessments and checks whether their services have a negative impact on the exercise of fundamental rights. This includes, for example, freedom of expression and information, but also the dissemination of disinformation and risks that could affect the mental health of users. In addition, the exchange of illegal goods and services is to be restricted.

Amazon doubts that it is a "Very Large Online Platform" (VLOP) within the meaning of the DSA. How the company explainedbe it "not the largest retailer in any of the EU countries in which we operate". It does not want to "be forced to fulfill onerous administrative obligations that do not benefit consumers in the EU". The US company has therefore filed a lawsuit. If other large retailers did not also fall under the associated stricter regulation, this would be unfair treatment, as the online giant explained on Tuesday. 

Complaints have the According to the EU However, this does not have a suspensive effect on the implementation of the stricter rules. Companies have until August of this year to implement the stricter regulations. Violations could result in fines of up to six percent of annual turnover.