The EU wants stricter rules for the cloud: Amazon and Microsoft, investigated for dominant position

The European Commission has launched three market investigations regarding cloud computing services, directly targeting technology giants Amazon and Microsoft, to determine whether their services should be designated as "gatekeepers" under the Digital Markets Act (DMA).

The Brussels executive is examining whether Amazon Web Services (AWS) and Microsoft Azure act as essential access points between businesses and consumers, even if they do not meet the standard quantitative thresholds of the DMA regarding the number of users or revenue. Recent analyses by the Commission suggest that these services hold extremely strong positions, which could be further reinforced by the specific characteristics of the sector.

If the investigation, which has a completion deadline of 12 months, concludes that the two platforms are "gatekeepers", they will have six months to comply with the strict obligations of the DMA, aimed at ensuring open and contestable markets.

In parallel, the Commission has opened a third, broader investigation to assess whether the current DMA rules are sufficient to combat unfair practices in the cloud sector. Brussels is seeking evidence regarding barriers to interoperability, limited access to data for business users, tying/bundling of services, and unbalanced contractual clauses.

Executive Vice President Teresa Ribera stated: We want this strategic sector to grow under fair, open, and competitive conditions... We will also look at whether the existing DMA rules need to be updated so that Europe keeps pace with rapidly evolving practices in the cloud sector. For her part, Henna Virkkunen, responsible for Technological Sovereignty, emphasized that cloud services are the "backbone" of Europe's digital future and are crucial for AI development. The final report on the cloud market will be published in 18 months and could lead to updates in legislation.

https://2eu.brussels/articol/stiri/ue-vrea-reguli-mai-dure-pentru-cloud-amazon-si-microsoft-investigate-pentru-pozitia-dominanta