The EU Digital Services Act enters into force: Amazon, controversies, and new regulations for marketplaces

The European Union's Digital Services Act (DSA) has recently come into force to establish new regulations for digital platforms and businesses, and impose transparency and accountability obligations for illegal content and products. These obligations include protecting privacy, the safety and security of minors, and ensuring that prohibited or illegal content in one member state cannot be distributed or sold online.

A recent significant development within the context of the EU's Digital Services Act involves a legal dispute involving Amazon. The company has initiated legal action against the European Union regarding the designation of its e-commerce marketplace as subject to the strictest level of regulation within the DSA. A recent ruling by the EU Court resulted in a partial victory for Amazon:

• One requirement of the DSA, which would have compelled the company to make a library of advertising announcements public, has been suspended;
• However, the court did not grant the request to suspend another requirement related to offering users a non-profile-based option for recommendations.

The DSA indeed imposes more stringent regulations on large technological platforms, with a particular emphasis on algorithm transparency, collaboration with authorized entities to report content, producing transparency reports, and implementing corporate traceability rules, known as "know your customer" rules. Platforms must also provide tools for content reporting and offer users the ability to challenge content moderation decisions.

Overall, the entry into force of the DSA represents a significant regulatory change for digital platforms operating in Europe, with complex implications and challenges to be addressed.