EU’s VLOP Rules Are “Too Strict” for Marketplaces

The German e‑commerce association Bevh (Bundesverband E‑Commerce und Versandhandel Deutschland) has urged EU regulators to rethink the Digital Services Act’s (DSA) “Very Large Online Platform” (VLOP) rules. Representing German online sellers, Bevh argues that applying the same heavy obligations to marketplaces as to social platforms like Facebook or TikTok is unfair and hampers competition.

What’s at stake?

Under the DSA, which has been fully effective since February 2024, platforms with over 45 million EU users are required to implement extensive measures, including risk assessments, algorithmic audits, and more. On Bevh’s watch list are obligations like “notice and takedown,” misinformation control, trader traceability, biased design avoidance, and transparency demands.

Marketplace vs. Social Media

Bevh contends that the DSA wrongly categorizes marketplaces alongside social networks under the VLOP umbrella. Social media comes with societal risks like disinformation and radicalization. However, they argue that online marketplaces are fundamentally different and already regulated by EU consumer protection and product safety laws.

During a recent legal hearing, Bevh emphasized that imposing extensive VLOP standards on commerce platforms discriminates against them compared to traditional retail formats.

Heavyweight challengers

This isn’t isolated. Amazon has filed a challenge against its VLOP designation, labeling it “arbitrary, disproportionate, and discriminatory”. Likewise, Zalando is contesting its classification, arguing its hybrid business model makes it fundamentally different from typical marketplaces.

What it all means

If rulings swing in favor of these companies, the DSA could be reshaped to distinguish between platform types. Advocates like Bevh suggest enforcement should align more closely with existing consumer protection frameworks. The outcome of these legal challenges could reshape how VLOP rules are interpreted and enforced. If courts agree that a one-size-fits-all model doesn’t make sense, we could see a more nuanced version of the DSA. Additionally, this version would treat social media, marketplaces, and hybrid platforms according to their specific risks and roles.

Bottom line: Marketplace platforms face a pivotal moment under the DSA. However, Bevh and major players argue that the current rules are an overreach, calling for a differentiation between commerce and social platforms. The upcoming court decisions may redefine how EU law treats online marketplaces and how they operate across the continent.