Amazon encounters increased scrutiny from the EU regarding recommender algorithms and transparency in advertising

In its latest move targeting a major marketplace, the European Commission issued Amazon another Request for Information (RFI) on Friday regarding its compliance with the bloc’s Digital Services Act (DSA).

This development underscores heightened scrutiny of the e-commerce giant by EU regulators, focusing specifically on Amazon’s recommender systems, transparency in advertising practices, and measures for assessing risks.

Earlier RFIs from the Commission to Amazon, including one in November focused on risk assessments related to illegal products and protection of fundamental rights, and another in January regarding data access for researchers, have preceded this latest inquiry.

The Digital Services Act imposes governance standards on platforms, requiring compliance in areas such as content moderation. For online marketplaces like Amazon, additional measures are mandated to address risks associated with the sale of illegal goods. Being designated as a very large online platform (VLOP) by the EU in April 2023, Amazon has been subject to enhanced transparency and accountability requirements under these regulations since August of the same year.

The Commission’s enforcement efforts are aimed at ensuring that VLOPs like Amazon adhere to these stringent obligations under the DSA.