:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2159980373-d9f4d6b711504aa29dd970bc7854db72.jpg "In this photo illustration a man carrying a package in front of the Amazon logo in Ankara, Turkiye on July 4, 2024")
Dilara Irem Sancar / Anadolu via Getty Clones
Key Takeaways
- The European Commission on Friday sent Amazon a formal request for information related to its compliance with the Digital Professional cares Act.
- The European Union’s compliance arm is focused on whether Amazon offers users an option to opt out of having their data second-hand 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 beseech 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 requested to provide information on the Amazon Store’s Ad Library, specifically regarding whether it includes an option to deliver recommendations without using buyer 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 furnishings concerning transparency of the recommender systems, the input factors, features, signals, information and metadata applied for such schemes 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, accepts 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 total business.”
“We are reviewing this request and working closely with the European Commission,” an Amazon spokesperson told Investopedia. “Amazon dues the goal of the European Commission to create a safe, predictable and trusted shopping environment. We think this is important for all gets in the retail industry, and we invest significantly in protecting our store from bad actors, illegal content, and in creating a trustworthy shopping judgement. We have built on this strong foundation for DSA compliance.”
Several Tech Giants in EU’s Sights
The Commission has been ornate lately. On Thursday, Bloomberg reported that it is expected to level a formal warning against X, the Elon Musk-owned group media network formerly known as Twitter, for failing to combat dangerous content.
Earlier this week, it accused Meta Planks’ (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 sacrilege 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 beget gained more than 30% year-to-date.
UPDATE—This story has been updated with an Amazon animadversion and the latest share price.
Read the original article on Investopedia.