Zalando had sued the European Commission after it was designated as a very large online platform (VLOP) under the Digital Services Act (DSA) in the same group as Alphabet’s Google and Meta and subject to onerous requirements.
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The Luxembourg-based General Court in September rejected its argument that it is a hybrid service which sells its own products as well as those provided by partners, making it different from other online giants.
“The General Court’s ruling creates an overly broad and incorrect interpretation of what third party content is, impacting many industries across Europe’s economic landscape,” Zalando said in its appeal to the EU Court of Justice (CJEU).
It said such a broad interpretation would subject nearly every online service, from media, to supermarkets and tourism to the DSA’s rules.
The appeal also argued that the lower tribunal has unfairly flipped the burden of proof by forcing VLOPs to prove they should not have been classified as such in the first place.
The company said the tribunal uses a flawed definition for counting active recipients of the service which decides whether a company is a VLOP or not.
Reporting by Foo Yun Chee
Editing by Mark Potter
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