EU Commission Requests More Information from Amazon Regarding Compliance with Digital Services Act
The European Commission has sent Amazon another request for information (RFI) in relation to its compliance with the bloc’s rulebook for digital services. This move underscores the increased scrutiny that EU enforcers are placing on the ecommerce giant, particularly in areas such as recommender systems, ads transparency provisions, and risk assessment measures.
The Commission’s previous RFI to Amazon, sent in November, focused on risk assessments and mitigations related to the dissemination of illegal products and the protection of fundamental rights. Another RFI was sent in January, seeking more information on how Amazon provides data access for researchers. This latest RFI is specifically focused on Amazon’s compliance with provisions concerning the transparency of recommender systems, ad repositories, and risk assessment reports.
These requests for information come as part of the EU’s Digital Services Act (DSA), which imposes governance standards on platforms and services. The DSA requires online marketplaces like Amazon to implement measures to tackle risks associated with the sale of illegal goods. Larger marketplaces, designated as very large online platforms (VLOPs), have additional obligations in terms of algorithmic transparency and accountability.
Amazon was designated as a VLOP in April 2023, and the additional rules have been in effect since August of that year. The European Commission is responsible for enforcing these obligations on VLOPs. Non-compliance with the DSA can result in penalties of up to 6% of global annual turnover, which, for Amazon, could reach billions of dollars.
The EU has given Amazon until July 26 to provide the requested information. Failure to respond adequately to an RFI could lead to sanctions. The EU has been paying close attention to online marketplaces and has recently sent RFIs to other VLOPs like Shein and Temu.
The interest in these platforms stems from the power of algorithmic sorting in influencing user experiences. The EU wants the DSA to ensure that platforms’ commercial agendas do not solely dictate the content and products users see. By opening up these blackbox AI systems, the EU aims to protect against AI-driven societal harms, such as the promotion of harmful content or the recommendation of dangerous products.
Amazon has expressed its dissatisfaction with the EU regime and has challenged its designation as a VLOP. Last year, the company won a temporary suspension on the requirement to publish an ads library, but this decision was later overturned by the EU General Court.
In response to the Commission’s RFI, an Amazon spokesperson stated that the company is reviewing the request and working closely with the European Commission. Amazon emphasizes its commitment to creating a safe and trusted shopping environment and investing significantly in protecting its platform from bad actors and illegal content.
Overall, these RFIs from the European Commission highlight the growing scrutiny on large online marketplaces like Amazon and signify the EU’s commitment to enforcing governance standards in the digital services sector.