Following reports earlier today that the European Commission (EC) was preparing to issue Elon Musk and X with a warning about not operating under the standards of the Digital Services Act (DSA), the EC has now asked Amazon for more information about its recommender systems and Ad Library as part of its probe into the e-commerce giant.
As one of the big tech firms designated as a Very Large Online Platform (VLOP), Amazon is under scrutiny to ensure it is complying with the Digital Services Act. To perform an effective investigation, the EC has asked Amazon to explain how its recommender systems comply with the DSA such as information these systems use and how users can opt out of profiling.
The Commission is also seeking details from Amazon about its online Ad Library such as its design, development, and supporting risk assessment documents. The company will now have until July 26, 2024, to get this information sent in.
Amazon is just one big tech company that"s being investigated by the EC under its new DSA and Digital Markets Act (DMA). Apple, Meta, Microsoft, and X are also facing scrutiny. If companies do not comply, they face significant fines based on a percentage of their revenues.
Once Amazon passes its information to the EC, it will be able to assess it and decide on any further action it needs to take and it could include formal proceedings. If Amazon doesn"t respond or provides incomplete or misleading information, it also faces penalties.
Interestingly, the statement from the EC made mention of a ruling from the Court of Justice of the European Union which rejected a request from Amazon to suspend its obligation to make its advertisement repository publicly available.
That decision is now allowing the Commission to more diligently crack down on potential violations of the DSA and DMA.
Source: European Commission