European Commission lines up Amazon and Microsoft for cloud gatekeeper status
The European Commission has indicated that Amazon Web Services (AWS) and Microsoft Azure are likely to be designated as "gatekeepers" under the Digital Markets Act (DMA). This preliminary finding, based on their significant market share and entrenched positions, signifies a major development in the EU's efforts to regulate major digital platforms, with potential fines of up to 10 percent of global turnover for non-compliance. The Commission identifies AWS and Azure as crucial gateways for businesses connecting with customers in the EU, citing their vast user bases, lock-in effects, and high switching costs. While they did not meet the DMA's quantitative thresholds, their substantial market influence has triggered this scrutiny, potentially leading to obligations concerning interoperability and data access. This potential designation will significantly impact businesses reliant on these cloud services, affecting competition and potentially fostering the growth of European cloud alternatives. Companies like Microsoft and Amazon have expressed concerns, with Microsoft highlighting the growing influence of Google Cloud and AWS emphasizing the risk to European investment and innovation due to what they see as overlapping regulation. The Open Cloud Coalition, however, welcomed the finding, stressing the need for immediate remedies to ensure customer choice and growth.
Curated and translated by Europe Digital for our multilingual European audience.
Why this matters for European digital sovereignty
The European Commission is poised to designate Amazon Web Services and Microsoft Azure as gatekeepers under the Digital Markets Act, reflecting the EU's push for digital sovereignty and greater market competition. This move could reshape how European businesses access cloud infrastructure and potentially spur the growth of domestic cloud alternatives by addressing entrenched market positions and lock-in effects. The implications extend to investment and innovation within Europe's digital ecosystem.
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