The European Commission has sent Amazon another request for information regarding its compliance with the Digital Services Act (DSA). This request focuses on areas such as Amazon’s recommender systems, ad transparency, and risk assessment measures. The DSA requires platforms like Amazon to adhere to governance standards and implement measures to tackle risks associated with the sale of illegal goods.
Amazon was designated as a Very Large Online Platform (VLOP) by the EU in April 2023, subjecting the company to additional algorithmic transparency and accountability obligations. Failure to comply with the DSA could result in significant penalties, as violations can lead to fines of up to 6% of global annual turnover, which for Amazon could amount to billions of dollars.
The Commission has requested detailed information from Amazon regarding the transparency of its recommender systems, the parameters used, and options for users to opt out. Additionally, the Commission is seeking information on Amazon’s ad repository and risk assessment report. Amazon has until July 26 to provide the requested information or face potential sanctions.
Algorithmic sorting plays a significant role in influencing users’ experiences on online platforms, and the EU aims to ensure that these systems do not prioritize commercial interests over user safety and well-being. The DSA is designed to protect against potential societal harms caused by AI-driven decisions, such as promoting harmful content or dangerous products.
Amazon has pushed back against the DSA requirements, challenging its VLOP designation and seeking to suspend certain compliance obligations. However, the EU General Court overturned these challenges, requiring Amazon to comply fully with the DSA. The Commission is closely monitoring Amazon’s compliance efforts and seeking additional information to ensure adherence to the regulations.
In response to the Commission’s request, Amazon stated that it is committed to creating a safe and trusted shopping environment and is working closely with the European Commission to achieve DSA compliance. The company emphasizes its investment in protecting customers from illegal content and maintaining a trustworthy shopping experience.
Overall, the EU’s investigation into Amazon’s compliance with the DSA underscores the growing scrutiny of online platforms and the importance of transparency, accountability, and user protection in the digital marketplace. It remains to be seen how Amazon will respond to the Commission’s request and whether any further actions will be taken based on the company’s compliance efforts.
