EU launches probe into Amazon and Microsoft cloud computing services

The EU Commission has launched market investigations into the Amazon and Microsoft cloud computing services, to assess whether they are ‘gatekeepers’ under the EU’s Digital Markets Act and should thus conform to its stricter rules.

The market investigations will assess whether Amazon Web Services and Microsoft Azure cloud computing services act as important gateways between businesses and consumers, despite not meeting the DMA gatekeeper thresholds for size, user number and market position. A third market investigation will assess if the DMA can effectively tackle practices that may limit competitiveness and fairness in the cloud computing sector in the EU.

“Cloud computing services are vital for Europe’s competitiveness and resilience,” said EC vice-president Teresa Ribera: “We want this strategic sector to grow on fair, open, and competitive terms. That’s why today we are opening investigations into whether Amazon’s and Microsoft’s leading cloud computing services, Amazon Web Services and Microsoft Azure, should be subject to the Digital Markets Act’s (DMA) obligations.”

Cloud computing is nowadays the backbone of many digital services, and it is seen as crucial for AI development. To foster innovation, trust, and Europe’s strategic autonomy, cloud services must be provided in a fair, open and competitive environment, says the EU executive.

According to the Commission, analyses of cloud markets conducted in recent years appear to indicate that the cloud computing services Microsoft Azure and Amazon Web Services occupy very strong positions in relation to businesses and consumers. An assessment will be made as to whether certain features of the cloud sector may further reinforce the position of Microsoft Azure and Amazon Web Services.

If the Commission’s investigation finds that Microsoft Azure and Amazon Web Services qualify as important gateways under the DMA, the cloud computing services would be added to the list of core platform services for which Amazon and Microsoft are already designated as gatekeepers.

The Commission is also gathering information from relevant market players to assess whether the current obligations under the DMA are effective in addressing practices that limit competitiveness or are unfair in the cloud sector. The investigation will cover, for instance, obstacles to interoperability between cloud computing services, limited or conditioned access for business users to data, tying and bundling services, and potentially imbalanced contractual terms.

Source: EUbusiness