Amazon faces more EU scrutiny over recommender algorithms and ads transparency

The European Commission sent Amazon an RFI regarding compliance with the EU's Digital Services Act, focusing on recommender systems and ads transparency.

: The European Commission has issued another RFI to Amazon about its compliance with the Digital Services Act. The main concerns are around transparency in Amazon's recommender systems, ad library, and risk assessments. Amazon has until July 26 to respond, with potential sanctions for inadequate replies.

The European Commission has sent another request for information (RFI) to Amazon regarding its compliance with the Digital Services Act (DSA). This latest inquiry focuses on transparency in Amazon's recommender systems, provisions for maintaining an ad repository, and measures for assessing and mitigating systemic risks on its platform.

Previously, the Commission sent two RFIs to Amazon, one in November 2023 and another in January 2024, focusing on illegal product dissemination and data access for researchers, respectively. The Commission's increased scrutiny aims to ensure that Amazon and other very large online platforms (VLOPs) comply with governance standards, including content moderation and risk management.

Amazon, designated as a VLOP in April 2023, faces significant penalties for DSA violations, which can amount to up to 6% of its global annual turnover. The company is required to provide the requested information by July 26, with failure to comply potentially triggering sanctions. Amazon has expressed its commitment to creating a safe and trusted shopping environment while reviewing the latest RFI from the Commission.

Recommender systemsAds transparencyEcommerce