EU opens investigation into Amazon, Microsoft cloud services
Brussels, (EFE).
The European Commission on Tuesday launched an investigation into Amazon and Microsoft to determine whether their cloud services hold too much market power under the EU’s Digital Markets Act (DMA).
Neither Amazon Web Services nor Microsoft Azure has at least 45 million monthly users in the European Union, meaning they do not formally meet the threshold to be designated as “internet gatekeepers.”
However, the commission wants to assess whether they nonetheless hold sufficient market share to influence free competition, it said in a statement.
“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,” the commission said.
“Moreover, the commission will assess if certain features of the cloud sector may further reinforce the position of Microsoft Azure and Amazon Web Services.”
The EU aims to complete the investigation within 12 months.
The commission said that if the 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 designation as major internet platforms would be similar to Amazon Marketplace, Amazon Ads, the Windows operating system for computers and tablets, and the social network LinkedIn.
In parallel, the commission is also assessing whether the DMA is adequate for regulating the potential risks that cloud computing services may pose to competition.
Specifically, it will examine “obstacles to interoperability between cloud services, limited or conditional access to data for business users, bundling and tying practices, and potentially unbalanced contractual terms.”
This second investigation will conclude with a report within 18 months, in which the commission may propose updates to the DMA’s obligations related to cloud computing services.
