American cloud giants Amazon and Microsoft are facing an investigation by the European Commission into cloud computing services.
UNN reports with reference to Euractiv.
Details
Amazon and Microsoft's most popular cloud services may face significant restrictions under Europe's Digital Markets Act (DMA). Whether the two companies' cloud services – Amazon Web Services (AWS) and Microsoft Azure – should be regulated under the said law is currently being studied by Brussels. The European regulator must reach a conclusion on this matter within 12 months. The goal is to better guarantee and control fair competition, as stated by Digital Technologies Commissioner Henna Virkkunen.
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Reference
Cloud computing is the foundation of many digital services and is crucial for the development of artificial intelligence. To foster innovation, trust, and Europe's strategic autonomy, cloud services must be provided in a fair, open, and competitive environment.
Context
The European Commission explains that AWS and Azure do not meet the usual "thresholds" defined by law for gatekeepers regarding size, number of users, or market position. However, the European executive body emphasizes that the investigation will assess whether cloud services should still fall under the Big Tech Regulation, as they are "important gateways between businesses and consumers."
According to the Commission, AWS and Azure have "very strong market positions with respect to both businesses and consumers."
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The EU investigation follows a similar investigation by the UK's antitrust authority, which last month recommended designating AWS and Azure as having strategic market power under the UK's Platform Power Regulation.
In the case of the European Union, if the Commission's investigation concludes that the two cloud giants fall under the DMA, Amazon and Microsoft will have six months to comply with the requirements.