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Key Takeaways
- The European Commission on Friday sent Amazon a formal request for information related to its compliance with the Digital Services Act.
- The European Union’s compliance arm is focused on whether Amazon offers users an option to opt out of having their data used in the Amazon Store’s Ad Library.
- Amazon has until July 26 to provide sufficient information, the Commission said.
Amazon (AMZN) on Friday was sent a formal request for information by the European Commission on how the body has complied with the body’s Digital Services Act (DSA).
The tech giant has been asked to provide information on the Amazon Store’s Ad Library, specifically regarding whether it includes an option to deliver recommendations without using user profiling data. The company is required to release its information by July 26.
“Amazon is asked to provide detailed information on its compliance with the provisions concerning transparency of the recommender systems, the input factors, features, signals, information and metadata applied for such systems and options offered to users to opt out of being profiled for the recommender systems,” it said.
If the European Commission, the European Union (EU)‘s enforcement arm, believes Amazon is in violation of the DSA, it can open an investigation and, if found guilty, the company could be fined up to 6% of its “worldwide annual turnover.”
“We are reviewing this request and working closely with the European Commission,” an Amazon spokesperson told Investopedia. “Amazon shares the goal of the European Commission to create a safe, predictable and trusted shopping environment. We think this is important for all participants in the retail industry, and we invest significantly in protecting our store from bad actors, illegal content, and in creating a trustworthy shopping experience. We have built on this strong foundation for DSA compliance.”
Several Tech Giants in EU’s Sights
The Commission has been busy lately. On Thursday, Bloomberg reported that it is expected to level a formal warning against X, the Elon Musk-owned social media network formerly known as Twitter, for failing to combat dangerous content.
Earlier this week, it accused Meta Platforms’ (META) practice of “pay or consent” advertising on Instagram and Facebook of violating the new Digital Markets Act (DMA), and charged Apple (AAPL) with its own DMA violation for unfairly restricting how developers can seek payments.
Amazon shares were up 1.1% to $199.84 as of 1:09 p.m. ET Friday. They have gained more than 30% year-to-date.
UPDATE—This story has been updated with an Amazon comment and the latest share price.