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EU Court Upholds 'Very Large' DSA Label for Amazon; Company Says It Will Appeal

The EU General Court has dismissed Amazon's bid to remove its designation as a "very large" online platform under the Digital Services Act. The court ruled marketplaces with more than 45 million users can pose societal risks — including illegal content and consumer-rights harms — and may therefore be subject to stricter rules. Amazon says it will appeal, arguing its store only sells goods; the court rejected this, stressing the need to prevent systemic risks despite possible compliance costs.

EU Court Upholds 'Very Large' DSA Label for Amazon; Company Says It Will Appeal

The European Union's General Court on Wednesday rejected Amazon's challenge to its classification as a "very large" online platform under the Digital Services Act (DSA), a decision that keeps the company subject to tighter obligations to tackle illegal and harmful content.

The court found that marketplaces exceeding the DSA's 45 million user threshold may present systemic risks to society and can therefore be designated for enhanced oversight. Those designated platforms are required to take additional measures to prevent the dissemination of illegal content and to protect fundamental rights, including consumer protection.

"The Very Large Online Platform status was designed to address systemic risks posed by very large companies with advertising as their primary revenue and that distribute speech and information," Amazon said in a statement.

"The Amazon Store, as an online marketplace, does not pose any such systemic risks; it only sells goods, and it doesn’t disseminate or amplify information, views or opinions," the company added.

The court dismissed that argument, noting that the relevant risks include not only the amplification of speech but also the dissemination of illegal content and infringements of consumer rights. It said regulatory intervention and the obligations attached to the "very large" designation are justified to prevent those risks, even when compliance imposes significant financial and operational burdens on platforms.

In its written ruling the court also rejected all other legal objections raised by Amazon. The company said it was disappointed and intends to appeal.

What this means

The decision reinforces regulators' ability to apply stricter DSA rules to large online marketplaces that reach the user threshold, potentially affecting compliance costs and operational practices for companies that operate at scale across the EU. Amazon's appeal could extend the dispute into a higher court, leaving the final interpretation of some DSA provisions unresolved for the time being.

By Bart H. Meijer; additional reporting by Alessandro Parodi and Supantha Mukherjee.