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Amazon loses court fight to suspend EU tech rules' ad clause
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Amazon loses court fight to suspend EU tech rules' ad clause
Mar 27, 2024 5:41 AM

BRUSSELS, March 27 (Reuters) - Amazon ( AMZN ) on

Wednesday lost its fight to suspend a requirement regarding its

online advertising under EU tech rules after Europe's top court

backed EU regulators, saying EU interests outweigh the U.S.

online retailer's material interests.

Under the Digital Services Act (DSA) which kicked in last

year, Amazon ( AMZN ) was designated as a very large online platform

subject to tough rules to tackle illegal and harmful content on

its platform.

The company subsequently challenged a DSA requirement to

make publicly available a repository containing detailed

information on its online advertising and also asked for an

interim measure until the court rules on the case.

A lower tribunal in September agreed to its request for an

interim measure to suspend the contested obligation, which

prompted the European Commission to turn to Europe's top court.

The Luxembourg-based Court of Justice of the European Union

(CJEU) set aside the suspension order and dismissed Aamzon's

application for an interim measure.

The judge said that Amazon's ( AMZN ) argument that the obligation

unlawfully limits its fundamental rights to respect for private

life and the freedom to conduct a business was not irrelevant.

He also said that without a suspension, it was likely that

Amazon ( AMZN ) would suffer serious and irreparable harm before any

judgment annulling the Commission's decision.

However, he said a suspension could have a detrimental

impact on the objectives of the DSA.

"Suspension would lead to a delay, potentially for several

years, in the full achievement of the objectives of the

Regulation on a Single Market for Digital Services and therefore

potentially allow an online environment threatening fundamental

rights to persist or develop," the judge said.

"The interests defended by the EU legislature prevail, in

the present case, over Amazon's ( AMZN ) material interests, with the

result that the balancing of interests weighs in favour of

rejecting the request for suspension."

Amazon ( AMZN ) said: "We are disappointed with this decision, and

maintain that Amazon ( AMZN ) doesn't fit the description of a 'Very

Large Online Platform' (VLOP) under the DSA, and should not be

designated as such."

The case is C-639/23 P(R) | Commission v Amazon Services

Europe.

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