US tech giant Amazon has lost its legal challenge against the European Union’s designation as a Very Large Online Platform (VLOP) under the Digital Services Act (DSA). The ruling, delivered by the EU’s General Court in Luxembourg on Wednesday, November 19, 2025, confirms that Amazon must comply with the stringent regulations aimed at curbing illegal content and mitigating systemic risks online. This decision establishes a precedent for other major platforms operating within the EU.
The European Commission first designated Amazon, alongside 25 other entities, as a VLOP in April 2023 due to its user base exceeding 45 million monthly active users. This classification compels these platforms to undertake more extensive content moderation, risk assessments, and transparency reporting than smaller services. Amazon contested this designation, arguing it infringes on fundamental business rights and data privacy.
EU Court Upholds Amazon’s DSA VLOP Status
Amazon’s core argument centered on the claim that its e-commerce platform doesn’t pose the “systemic risks” the DSA seeks to address. The company maintained that it merely facilitates the sale of goods and does not disseminate information or opinions. However, the court refuted this, stating that all VLOPs, including marketplaces, are treated uniformly due to their potential impact on society.
According to the court’s published ruling, distinguishing between platforms based on user numbers is “neither arbitrary nor manifestly inappropriate” for preventing risks related to illegal content. The reasoning emphasizes the broad exposure to potentially harmful material that platforms with massive user bases create. This decision aligns with the broader goals of the DSA to create a safer online environment for European citizens.
The court acknowledged that complying with the DSA’s requirements introduces additional costs for platforms like Amazon. Nevertheless, it determined that such interference is justified by the need to protect fundamental rights, including freedom of expression and information, as enshrined in the Charter of Fundamental Rights of the European Union.
Previous Rulings and Related Cases
This is not the first time Amazon has attempted to challenge the DSA’s application. Last year, the court already rejected Amazon’s request for interim measures to delay full implementation of the law while the case was being heard. A key point of contention then – and now – was Amazon’s concern over revealing sensitive advertising data to competitors through required transparency reports. The court consistently prioritized the EU’s legislative agenda.
Additionally, in September 2025, the EU court similarly ruled against German fashion retailer Zalando, confirming its VLOP status despite the company’s claims that the Commission overestimated its user numbers. The Digital Services Act is being rigorously enforced, signaling a commitment to holding large online platforms accountable.
Amazon, in a statement to Euronews, expressed disappointment with the ruling and intends to appeal to the EU’s highest court, the Court of Justice of the European Union. The company reiterated its position that the Amazon Store simply facilitates transactions and doesn’t engage in the dissemination of content that would create systemic risks.
The DSA’s broader implications extend to content moderation practices, algorithm transparency, and the protection of user rights. Experts predict further legal challenges as companies grapple with the new regulatory landscape. The heightened scrutiny also applies to online advertising and the power of large digital marketplaces.
What happens next remains to be seen, as Amazon pursues its appeal. However, this ruling underscores the EU’s determination to enforce the Digital Services Act and reshape the online environment. Businesses operating in the EU should closely monitor developments and ensure compliance with these evolving regulations to avoid potential penalties.
