The European Commission Requests Information from Amazon on Compliance with Digital Services Act

Key Takeaways

• The European Commission has formally requested information from Amazon regarding its compliance with the Digital Services Act.
• The focus is on whether Amazon provides users with an option to opt out of having their data used in the Amazon Store’s Ad Library.
• Amazon has until July 26 to provide the necessary information.

Amazon, the tech giant, received a formal request for information from the European Commission on Friday regarding its compliance with the Digital Services Act (DSA). The request specifically pertains to the Amazon Store’s Ad Library and whether it offers an option to provide recommendations without using user profiling data. Amazon has been given until July 26 to submit the required information.

The European Commission, which serves as the enforcement arm of the European Union (EU), can initiate an investigation if it believes Amazon is in violation of the DSA. If found guilty, Amazon could face fines of up to 6% of its worldwide annual turnover.

Amazon spokesperson stated, “We are reviewing this request and working closely with the European Commission. Amazon shares the goal of the European Commission to create a safe, predictable, and trusted shopping environment. We think this is important for all participants in the retail industry, and we invest significantly in protecting our store from bad actors, illegal content, and in creating a trustworthy shopping experience. We have built on this strong foundation for DSA compliance.”

Several Tech Giants in EU’s Sights

The European Commission has been actively pursuing compliance from tech giants. Recently, it was reported that a formal warning is expected to be issued against X, the social media network owned by Elon Musk (formerly known as Twitter), for failing to combat dangerous content.

Earlier this week, the Commission accused Meta Platforms of violating the Digital Markets Act (DMA) with its “pay or consent” advertising practice on Instagram and Facebook. Additionally, Apple was charged with a DMA violation for unfairly restricting how developers can seek payments.

Amazon’s shares saw a 1.1% increase to $199.84 as of 1:09 p.m. ET on Friday, with a year-to-date gain of over 30%.

This story has been updated with a comment from Amazon and the latest share price information.

Read the original article on Investopedia.

Conclusion

The European Commission’s request for information from Amazon regarding its compliance with the Digital Services Act highlights the increasing scrutiny faced by tech companies in the EU. As regulatory bodies aim to ensure transparency and data privacy, companies must navigate these regulations to maintain trust and compliance in the digital marketplace.