Amazon Faces EU Data Privacy Inquiry in 2025: Compliance with Digital Services Act Under Scrutiny
In 2025, the European Commission has formally requested information from Amazon regarding its adherence to the Digital Services Act, focusing on data privacy and user options within the Amazon Store’s Ad Library. Discover the implications and Amazon's response to this significant regulatory development.
Essential Insights
- On Friday, the European Commission issued a formal information request to Amazon concerning its compliance with the Digital Services Act (DSA).
- The inquiry targets whether Amazon provides users the ability to opt out of data profiling within its Amazon Store Ad Library.
- Amazon must submit comprehensive information by the deadline of July 26, 2024.
Amazon (AMZN) has officially been approached by the European Commission to clarify how it aligns with the DSA regulations. The focus lies particularly on transparency and user control regarding data utilization in the advertising recommendations of the Amazon Store.
The Commission is seeking detailed disclosures about Amazon’s recommender systems, including the data inputs, algorithms, metadata, and notably, whether users can choose to avoid profiling-based recommendations. Amazon’s response is expected by July 26, 2024.
"Amazon is requested to provide extensive details on its adherence to transparency rules for recommender systems, the nature of input data and signals employed, and options available for users to opt out of profiling," the Commission stated.
If non-compliance is detected, the European Commission can initiate a formal investigation, potentially leading to fines up to 6% of Amazon’s global annual revenue.
An Amazon spokesperson told ZAMONA, "We are actively reviewing the Commission’s request and cooperating fully. Amazon supports the goal of creating a secure and trustworthy shopping environment. We invest heavily in protecting our platform from malicious activities and unlawful content and have laid a strong foundation for complying with the Digital Services Act."
EU Intensifies Oversight on Major Tech Companies
The European Commission has recently ramped up regulatory scrutiny. Just days earlier, a formal warning was anticipated for X (formerly Twitter) over insufficient measures against harmful content. Meta Platforms is under fire for allegedly violating the Digital Markets Act with its advertising policies on Instagram and Facebook, while Apple faces charges related to unfair payment restrictions under the same legislation.
Amazon shares rose by 1.1%, reaching $199.84 as of 1:09 p.m. ET on Friday, marking an over 30% increase year-to-date.
UPDATE: This article includes Amazon’s official statement and the latest stock price update.
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