EU Court Upholds Amazon Very Large Platform Status, Reinforces Rules

Europe's General Court on November 19 rejected Amazon’s legal challenge to its classification as a very large online platform under the European Union’s Digital Services Act. The court's ruling affirms a regulator position that marketplaces, not only social networks or search engines, can create systemic risks by disseminating illegal content, infringing consumer rights or producing other harms, and therefore may be subject to stricter obligations for transparency, content moderation and risk mitigation.

The DSA, first adopted at the EU level in recent years to update digital rules, created a special category for the largest platforms because their size and reach can amplify harm. The General Court’s decision preserves that regulatory approach and removes a legal hurdle to more demanding oversight of large e commerce sites. Amazon said it planned to review options, including an appeal.

Legal analysts said the judgment is likely to reverberate across the industry. By endorsing the regulator view that marketplaces are capable of systemic impact, the court broadens the kinds of platforms that must carry out independent risk assessments, provide greater transparency about recommender systems and content moderation practices, and take proactive measures to prevent distribution of illegal goods and harmful content. That means major online marketplaces will need to show how they identify, assess and mitigate risks linked to their algorithms, third party sellers and advertising systems.

For consumers and small sellers who use those marketplaces, the implications could be significant. Stricter enforcement may result in faster removal of illegal product listings, clearer channels for reporting and redress, and new obligations for platforms to police counterfeit goods and unsafe products. At the same time, compliance measures could change how listings are displayed, how targeted advertising is delivered, and how swiftly some sellers are removed from marketplaces.

The ruling also underscores the European Commission’s stance that digital platforms must shoulder responsibility commensurate with their scale. Regulators have argued that the sheer volume of transactions and the central role that marketplaces play in shaping what users see means that traditional distinctions between content platforms and commerce sites no longer reflect the realities of online ecosystems.

The decision comes amid broader transatlantic debates over how to regulate large technology firms. European authorities have leaned toward outcome focused rules that require demonstrable mitigation of systemic harms. Companies facing that scrutiny must balance compliance costs, legal exposure and operational changes against the competitive benefits of scale.

By sustaining the very large platform designation, the court preserved a powerful regulatory tool. The immediate practical effect will be continued oversight by EU authorities and the requirement that Amazon and similar firms meet the heightened DSA duties. How Amazon responds, and whether it seeks further judicial review, will determine the next chapters in how digital marketplaces are governed in Europe and beyond.