EU could hand Amazon, Microsoft ‘gatekeeper’ title for cloud services
The European Union is investigating the cloud sector to determine if Amazon and Microsoft should be designated as "gatekeepers" under the Digital Markets Act (DMA). This move underscores the EU's commitment to regulating large digital platforms and ensuring fair competition within the technology market. The investigation signals a potential shift in how cloud services are governed within the EU, with significant implications for both providers and users. The European Commission is actively probing whether the DMA's current framework is sufficient to effectively govern the cloud sector. This includes analyzing the market power and potential anti-competitive practices of major cloud service providers. If deemed gatekeepers, Amazon and Microsoft could face stricter rules and obligations under the DMA, potentially impacting their service offerings and business strategies within Europe. This regulatory scrutiny could affect businesses reliant on cloud services, requiring them to reassess their vendor choices and service agreements. The designation of gatekeeper status could also encourage the development of alternative cloud solutions, potentially fostering a more diverse and competitive cloud market within the EU. Ultimately, the investigation seeks to promote a level playing field and enhance digital sovereignty.
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