Digital Markets Act: EU Targets Cloud Power of US Tech Companies
The European Union's competition authorities are targeting the market dominance of major cloud providers, potentially leading to regulatory interventions. This move is spurred by concerns over the reliability of cloud services and the concentration of power in the hands of a few US tech giants. The focus aligns with the EU's broader effort to assert digital sovereignty and ensure fair competition within its digital market. Investigations will center on cloud service outages and their impact on businesses and consumers. Authorities have the power to impose obligations on cloud providers, ensuring they operate under fair and transparent conditions. This includes scrutinizing service agreements, data transfer practices, and the interoperability of cloud services. This action directly impacts cloud providers and the businesses relying on them, particularly those heavily dependent on the services of dominant players. It reflects the EU's commitment to the Digital Markets Act (DMA) and its goal of preventing large digital platforms from leveraging their market power unfairly. Further investigations may shape the future of cloud computing in Europe, potentially fostering a more diversified and competitive landscape.
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