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    Home > Finance > Amazon asks court to scrap EU tech label, arguing it poses no systemic risks
    Finance

    Amazon asks court to scrap EU tech label, arguing it poses no systemic risks

    Published by Global Banking & Finance Review®

    Posted on June 12, 2025

    2 min read

    Last updated: January 23, 2026

    Amazon asks court to scrap EU tech label, arguing it poses no systemic risks - Finance news and analysis from Global Banking & Finance Review
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    Tags:technologycompliancefinancial servicesinnovationretail trade

    Quick Summary

    Amazon contests its VLOP status under the EU's Digital Services Act, arguing it poses no systemic risks. The case is in the General Court.

    Amazon Challenges EU's VLOP Designation, Claims No Systemic Risks

    By Foo Yun Chee

    BRUSSELS (Reuters) - Amazon asked Europe's second-highest court on Thursday to scrap its designation as a platform subject to stricter requirements under landmark EU online content rules, arguing that it poses no systematic risks to its users.

    The Digital Services Act, which came into force in 2022, requires Big Tech companies to do more to tackle illegal and harmful content on their platforms.

    The U.S. online retail giant took its grievance to the Luxembourg-based General Court after the European Commission classified it as a very large online platform (VLOP) under the DSA.

    A VLOP designation requires companies to do more to tackle illegal online content, undertake risk management, conduct external and independent auditing and share data with authorities and researchers.

    "Online marketplaces like the Amazon Store do not pose systemic risks. Second, the VLOP rules do not and cannot rationally assist in preventing the dissemination of illegal or counterfeit goods," Amazon's lawyer Robert Spano told the court.

    "The VLOP rules therefore make no sense when applied to online marketplaces," he said.

    Amazon said any risks are limited to individual customers, not the totality of its users and that even if problematic products exist, widespread exposure is minimal and already dealt with by a number of product safety and compliance laws.

    "When it comes to marketplaces like the Amazon Store, size does not multiply risk. It is an arbitrary, disproportionate and discriminatory metric," Spano said.

    The court will rule in the coming months.

    Meta Platforms, Chinese social media app TikTok and German online retailer Zalando have also challenged the DSA on various grounds.

    The case is T-367/23 - Amazon EU v Commission.

    (Reporting by Foo Yun Chee; Editing by Joe Bavier)

    Key Takeaways

    • •Amazon challenges its VLOP designation under EU rules.
    • •The Digital Services Act imposes stricter content regulations.
    • •Amazon argues it poses no systemic risks to users.
    • •The case is being heard at the Luxembourg-based General Court.
    • •Other companies like Meta and TikTok have also challenged the DSA.

    Frequently Asked Questions about Amazon asks court to scrap EU tech label, arguing it poses no systemic risks

    1What is Amazon's argument against the VLOP designation?

    Amazon argues that online marketplaces like the Amazon Store do not pose systemic risks and that the VLOP rules are arbitrary and disproportionate.

    2What does the Digital Services Act require from VLOPs?

    The Digital Services Act requires very large online platforms to manage risks, conduct audits, and share data with authorities to tackle illegal content.

    3What other companies have challenged the Digital Services Act?

    Meta Platforms, TikTok, and Zalando have also challenged the DSA on various grounds, similar to Amazon's legal actions.

    4When is the court expected to rule on Amazon's case?

    The court is expected to rule in the coming months on Amazon's challenge against the European Commission's classification.

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