By Foo Yun Chee and Inti Landauro
BRUSSELS (Reuters) -Amazon on Wednesday lost its fight to suspend a requirement regarding its online advertising under EU tech rules after Europe's top court backed EU regulators, saying EU interests outweigh the U.S. online retailer's material interests.
Under the Digital Services Act (DSA) which kicked in last year, Amazon (NASDAQ:AMZN) was designated as a very large online platform subject to tough rules to tackle illegal and harmful content on its platform.
The company subsequently challenged a DSA requirement to make publicly available a repository containing detailed information on its online advertising and also asked for an interim measure until the court rules on the case.
A lower tribunal in September agreed to its request for an interim measure to suspend the contested obligation, which prompted the European Commission to turn to Europe's top court.
The Luxembourg-based Court of Justice of the European Union (CJEU) set aside the suspension order and dismissed Aamzon's application for an interim measure.
The judge said that Amazon's argument that the obligation unlawfully limits its fundamental rights to respect for private life and the freedom to conduct a business was not irrelevant.
He also said that without a suspension, it was likely that Amazon would suffer serious and irreparable harm before any judgment annulling the Commission's decision.
However, he said a suspension could have a detrimental impact on the objectives of the DSA.
"Suspension would lead to a delay, potentially for several years, in the full achievement of the objectives of the Regulation on a Single Market for Digital Services and therefore potentially allow an online environment threatening fundamental rights to persist or develop," the judge said.
"The interests defended by the EU legislature prevail, in the present case, over Amazon's material interests, with the result that the balancing of interests weighs in favour of rejecting the request for suspension."
Amazon said: "We are disappointed with this decision, and maintain that Amazon doesn't fit the description of a 'Very Large Online Platform' (VLOP) under the DSA, and should not be designated as such."
The case is C-639/23 P(R) | Commission v Amazon Services Europe.