BRUSSELS, March 13 (Reuters) - Amazon ( AMZN ) on Friday

won its appeal against a record 746-million-euro ($854.4

million) fine imposed by Luxembourg's privacy regulator, after a

court found the watchdog had not properly carried out its

analysis and must reassess the case.

The Luxembourg National Commission for Data Protection

(CNPD) penalised Amazon ( AMZN ) in 2021 over its online behavioural

advertising practices, saying its processing of users' personal

data breached EU privacy rules known as the General Data

Protection Regulation (GDPR).

The same court had last year sided with the privacy watchdog

by upholding the fine, prompting Amazon ( AMZN ) to appeal its ruling.

Judges said they accepted the U.S. tech giant's argument

that the watchdog had failed to analyse whether the company had

intentionally violated the GDPR or was merely negligent.

They said CNPD also did not examine other sanction options

and had almost automatically handed out the fine.

"The relevant analysis by the supervisory authority will

have to be carried out for the first time upon referral," the

court said, annulling the regulator's 2021 decision.

Amazon ( AMZN ) welcomed the court judgment.

"We strongly disagreed with the initial ruling and

disproportionate fine that had originally been issued in this

case, which is why we appealed," a spokesperson for the company

said in an email.

The CNPD said it took note of the ruling.

It said its action "has led to Amazon's ( AMZN ) practices being

brought into full compliance with the relevant provisions of the

case regarding online behavioural advertising".

($1 = 0.8731 euros)