Brussels: The European Commission has initiated three market investigations into cloud computing services under the Digital Markets Act (DMA). The investigations will evaluate whether Amazon Web Services and Microsoft Azure should be designated as gatekeepers, thereby acting as significant intermediaries between businesses and consumers, despite not meeting the DMA’s gatekeeper thresholds for size, user number, and market position. Additionally, the third investigation will assess the effectiveness of the DMA in addressing practices that may restrict competitiveness and fairness in the EU’s cloud computing sector.
According to Cyprus News Agency, cloud computing is essential for numerous digital services and is vital for the development of artificial intelligence. To promote innovation, trust, and Europe’s strategic independence, cloud services must be delivered in a fair, open, and competitive environment. The Commission’s investigations will analyze whether Amazon Web Services and Microsoft Azure hold strong positions in relation to businesses and consumers, as indicated by recent analyses of cloud markets.
If the investigations determine that Microsoft Azure and Amazon Web Services meet the criteria as important gateways under the DMA, these services will be added to the list of core platform services for which Amazon and Microsoft are already recognized as gatekeepers. The Commission is also collecting information from market participants to evaluate whether current DMA obligations sufficiently address practices that hinder competitiveness or are unfair in the cloud sector. This includes examining obstacles to interoperability, limited data access for business users, and potentially unfair contractual terms.
The Commission plans to conclude the investigations into Microsoft Azure and Amazon Web Services within 12 months. Should it be determined that Microsoft and Amazon qualify as gatekeepers, they will have six months to ensure compliance with DMA obligations. The investigation into the DMA’s application to cloud markets will culminate in a final report within 18 months, potentially proposing updates to DMA obligations regarding cloud services.
The Digital Markets Act aims to maintain contestable and fair markets in the digital sector by identifying large digital platforms as ‘gatekeepers’ and imposing certain obligations while prohibiting unfair practices. Even if a digital platform does not meet the quantitative thresholds of the DMA, the Commission may investigate if it controls an important gateway position and should be designated a gatekeeper. The Commission’s investigations are supported by the Dutch competition authority, the Authority for Consumers and Markets (ACM), as per DMA cooperation rules.