EU Court rejects Amazon's Bid to delay transparency rule

The European Court of Justice (ECJ) this week rejected Amazon's request to suspend a new regulation requiring large online platforms to make information about advertising publicly available.

The decision stems from a designation by the European Commission classifying Amazon as a "very large online platform" subject to the Digital Services Act (DSA). This act, implemented in April 2023, mandates such platforms to create a repository containing details on online advertising displayed on their services.

Amazon challenged the Commission's decision and sought to temporarily halt the obligation to create the advertisement repository. The General Court initially ruled in Amazon's favor, suspending the enforcement of the specific clause.

However, the European Commission appealed the decision, arguing they were not given a fair chance to respond to Amazon's arguments before the General Court. The ECJ's Vice-President ultimately sided with the Commission, dismissing Amazon's request for suspension.

The Court acknowledged that creating the repository could potentially infringe upon Amazon's privacy and business rights. However, they emphasized the potential negative consequences of delaying the implementation of the DSA's transparency measures. The ECJ highlighted the importance of a swift public record of online advertising to safeguard fundamental rights in the digital sphere.

The Court's order emphasized that this is a temporary decision regarding the enforcement of the regulation. The General Court will deliver a final judgment on the legality of the Commission's classification of Amazon at a later date.