LUXEMBOURG, March 6 (Reuters) - Zalando,
Europe's biggest online fashion retailer, on Thursday criticised
EU tech regulators for lumping it in the same group as Amazon ( AMZN )
and AliExpress, saying it should not be subject to as
stringent provisions of the bloc's tech rules as the other two
companies.
The European Commission's Digital Services Act (DSA), which
came into effect in 2022 requires very large online platforms
(VLOP) to do more to tackle illegal and harmful content or risk
fines as much as 6% of their global annual revenue.
Such label should not apply to Zalando, the company told
Europe's second-top court.
"Amazon ( AMZN ), AliExpress, booking.com. Zalando differs
fundamentally from these (business models). The European
Commission has not paid sufficient attention to this," Zalando's
lawyer Robert Briske told the panel of five judges at the
General Court.
"Zalando has a hybrid service which in our view is one of
the issues in this case. It is not purely an online shop, not
purely an online marketplace," Briske said.
Zalando, which on Thursday said it aimed to expand its range
of brands, sells its own products as well as those provided by
partners.
Briske also disputed the Commission's count of Zalando's
active users, saying its 83 million figure was erroneous and
that only 30.8 million visitors to its site can be counted as
active recipients in 2023 when it was classified as a VLOP.
The EU executive said there was no difference between
Zalando's business model and that of Amazon ( AMZN ) or AliExpress.
"Amazon Store, AliExpress, all operate similarly hybrid
services," Commission lawyer Liane Wildpanner told the court.
"The applicant is seeking to have the best of both worlds,"
she said.
BEVH, Germany's e-commerce association, backed Zalando while
the European Information Society Institute, the European
Parliament and the Council of the European Union sided with the
Commission.
The General Court will rule on the challenge in the coming
months. Amazon ( AMZN ) has also sued the Commission over its designation
and is waiting for the court to set a date for a hearing.
The case is T-348/23 Zalando v Commission.