🔥 Trending EU Targets Microsoft and Amazon Cloud Services with New Gatekeeper Regulations

The European Union (EU) is extending its landmark Digital Markets Act (DMA) to include the cloud computing services of Amazon and Microsoft. EU antitrust regulators have preliminarily identified Amazon Web Services (AWS) and Microsoft Azure as "gatekeepers" under these new rules ¹²³⁵.

What is the Digital Markets Act (DMA)?

The Digital Markets Act is a key piece of EU legislation designed to ensure fair and open digital markets. It targets large online platforms, referred to as "gatekeepers," that have a significant impact on the internal market, serve as an important gateway for business users to reach end users, and enjoy an entrenched and durable position ³. The DMA imposes specific obligations and prohibitions on these gatekeepers to prevent anti-competitive practices and foster greater competition and innovation.

Why are Amazon and Microsoft's Cloud Services Targeted?

The EU's decision to include AWS and Microsoft Azure under the DMA stems from a market investigation. Regulators believe that these cloud services hold a dominant position in the market, acting as crucial intermediaries for many businesses ⁵. This designation aims to limit the dominance of these "Big Tech" companies in the cloud sector ¹.

Implications of the "Gatekeeper" Designation

Being designated as a "gatekeeper" under the DMA brings several responsibilities and restrictions for AWS and Microsoft Azure:

• Fair Competition: The rules aim to prevent these companies from leveraging their dominant position in cloud services to unfairly disadvantage smaller competitors or lock in customers ³.
• Interoperability: Gatekeepers may be required to make their services more interoperable with those of other providers, allowing for easier data portability and switching between cloud platforms.
• Transparency: Increased transparency requirements regarding their data practices and service offerings are expected.
• Prohibited Practices: The DMA prohibits certain anti-competitive behaviors, such as self-preferencing their own services over those of rivals.

This move marks the first time Europe's powerful tech regulation is being extended into the cloud infrastructure sector ⁵. Both Amazon and Microsoft have expressed concerns regarding this potential designation. Amazon, for instance, has highlighted the diverse nature of cloud services, suggesting that a blanket "gatekeeper" label might not accurately reflect the market dynamics ³.

The preliminary conclusion by the EU antitrust regulators is a significant step, and if finalized, it will impose a new set of rules on how these tech giants operate their cloud businesses within the European Union ²⁴.