Yazılar

Amazon Challenges EU’s ‘Very Large Online Platform’ Label, Citing Lack of Systemic Risk

/in /tarafından

Amazon has asked Europe’s General Court in Luxembourg to overturn its designation as a “very large online platform” (VLOP) under the European Union’s Digital Services Act (DSA). The U.S. e-commerce giant argues that it does not pose systemic risks to users that would justify the stricter regulatory requirements imposed by the label.

The DSA, which came into force in 2022, targets large tech companies, requiring those classified as VLOPs to implement enhanced measures to combat illegal and harmful content. These measures include comprehensive risk management, independent auditing, and data sharing with regulators and researchers.

Amazon’s legal counsel, Robert Spano, told the court that online marketplaces like Amazon’s store do not create systemic risks, and that VLOP rules are ineffective in preventing the spread of illegal or counterfeit goods on such platforms. He emphasized that any risks are limited to individual customers rather than the platform’s entire user base, and existing product safety laws already address these issues.

Spano criticized the use of size as a metric for risk, describing it as “arbitrary, disproportionate and discriminatory.”

The court is expected to deliver its verdict in the coming months.

Other major tech companies, including Meta Platforms, TikTok, and German retailer Zalando, have also contested aspects of the DSA.

Google Faces Potential Major Fine in Mexico Over Antitrust Allegations

/in /tarafından

Mexico’s antitrust authority, the Federal Economic Competition Commission (Cofece), is expected to deliver a ruling by June 17 on whether Google engaged in monopolistic practices in the country’s digital advertising market. If found guilty, the tech giant could face a fine of up to 8% of its annual revenue in Mexico, which would represent one of the largest penalties Cofece has ever imposed.

Although Google’s parent company, Alphabet, does not disclose country-specific revenues, its “Other Americas” segment, which includes Latin America, generated $20.4 billion in revenue in 2024. This makes Google the most significant company yet targeted by Mexico’s competition regulator.

Cofece’s investigation into Google Mexico began in 2020 and moved into its trial phase in 2023, allowing Google the opportunity to present counter-evidence. The regulator alleges that Google effectively built a monopoly in Mexico’s digital advertising sector. As part of its investigation, Cofece also sought Google’s financial information from Mexico’s tax authority (SAT). An oral hearing with Google, considered one of the final steps in the process, was held on May 20.

Under Mexican law, the maximum fine for monopolistic conduct is capped at 8% of a company’s annual revenue. Should Cofece rule against Google, the company may seek an injunction to delay the penalty while a specialized court reviews the decision.

This case aligns with broader global regulatory scrutiny of Google’s business practices. In the United States, Google has faced multiple antitrust cases. Last year, a U.S. district judge ruled that Google holds an unlawful monopoly in online search and search advertising. In another case, the U.S. Justice Department accused Google of illegally dominating online advertising technology markets and has suggested the company divest parts of its Google Ad Manager business.

Domestically, Google has also faced political friction in Mexico. President Claudia Sheinbaum has filed a lawsuit against Google over its renaming of the Gulf of Mexico to “Gulf of America” for U.S. Google Maps users following a decision under former U.S. President Donald Trump. Mexican lawmakers from the ruling Morena party have been urging Cofece to resolve the antitrust case against Google since last year.

Cofece and Google have declined to comment on the ongoing investigation.

EU Defends Digital Markets Act, Insists It’s Not Targeting U.S. Tech Giants

/in /tarafından

European Union officials have rejected accusations that their new Digital Markets Act (DMA) is aimed at U.S. tech giants. In a joint letter to U.S. congressmen Jim Jordan and Scott Fitzgerald, EU antitrust chief Teresa Ribera and EU tech chief Henna Virkkunnen emphasized that the DMA is designed to keep digital markets open and applies to all companies meeting the criteria for being considered “gatekeepers,” regardless of their headquarters.

Ribera and Virkkunnen responded to concerns raised by U.S. lawmakers about the potential impact of the DMA on U.S. firms. The letter, dated March 6, clarified that the law does not specifically target U.S. companies, but instead applies to any firm that fits the established gatekeeper definition in the EU.

The EU officials also defended the DMA against criticism that it could stifle innovation. They argued that the act aims to prevent unfair practices by dominant players, thus fostering a more open and competitive digital market that will allow new players to emerge and innovate. Ribera and Virkkunnen highlighted that similar concerns over monopolistic behavior had prompted antitrust investigations and legal actions against companies like Google, Amazon, Apple, and Meta in the U.S. under the Trump administration and beyond.

In response to claims that EU fines on American tech firms resemble a European tax, the EU officials emphasized that the primary goal of enforcement is to ensure compliance with the law, not to impose punitive measures. They pointed out that sanctions, which are a standard feature of both EU and U.S. regulations, are essential for ensuring effective enforcement.