Amazon; 1st US firm to challenge EU digital regulations
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Amazon's decision may trigger other tech giants to do the same.
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The Amazon logo is seen in Douai, northern France, April 16, 2020 (AP)
Using the justification that it is being unfairly targeted by the law, Amazon has become the first US corporation to challenge proposed EU legislation aimed at forcing Big Tech to control internet material.
The software giant with headquarters in Seattle filed a petition with the Luxembourg general court on Tuesday, seeking to revoke its status as a "very large online platform" under the Digital Services Act (DSA), which imposes additional requirements to combat hate speech and misinformation online.
Eighteen other businesses, such as Twitter and TikTok, will closely monitor Amazon's decision.
The biggest online retailer in Europe and based in Germany, Zalando, was the first business to file a lawsuit after being caught by the legislation. Long-anticipated Silicon Valley organizations would also rebel against the laws.
In order for regulators to better monitor the security and legitimacy of goods sold online, the DSA aims to take aim at intermediaries like Zalando.
According to Amazon, "The DSA was designed to address systemic risks posed by very large companies with advertising as their primary revenue and that distribute speech and information. Amazon doesn’t fit this description of a 'very large online platform' under the DSA and therefore should not be designated as such."
The US company said its retail business generates the majority of its revenue, adding that if it were included on the European Commission's list of targeted businesses, it would be "unfairly singled out and forced to meet onerous administrative obligations that do not benefit EU consumers".
Amazon's argument will be that its store gives users goods for sale and that it does not disseminate content like misinformation, which is what the DSA regulations are meant to address.
The legislation, which is a component of a revision to the EU's digital regulations, enters into force on August 25. It establishes new guidelines that all significant digital platforms must follow in order to police hate speech, misinformation, and counterfeit content online.
An inquiry for comments received no immediate response from the commission.
"The scope of the DSA is very clear and is defined to cover all platforms that expose their users to content, including the sale of products or services, which can be illegal," the statement said.
"For marketplaces as for social networks, very wide user reach increases the risks and the platforms’ responsibilities to address them."
The commission will defend its position in court, it said.
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