EU probes Amazon, Microsoft's cloud services for potential curbs

1 month ago 24

The European Commission has launched 3 marketplace investigations connected unreality computing services by Amazon and Microsoft nether the Digital Markets Act (DMA), which aims to curb the powerfulness of Big Tech and guarantee a level playing tract for smaller rivals.

It opened 2 probes to measure if the companies should beryllium designated arsenic gatekeepers for their unreality services, and a 3rd probe to measure if the DMA tin efficaciously tackle anticompetitive practices successful the unreality computing sector.

Amazon Web Services (AWS) is the largest unreality supplier globally followed by Microsoft's Azure and Alphabet's Google Cloud.

The determination by the European Commission comes amid tensions with U.S. President Donald Trump who has sided with U.S. tech giants lobbying against EU regulations. That has successful crook triggered concerns that the EU watchdog whitethorn easiness up connected Big Tech.   

"We volition besides look astatine whether the DMA's existing rules request to beryllium updated truthful Europe tin support gait with fast-evolving practices successful the unreality sector," EU antitrust main Teresa Ribera said successful a statement.

While a Microsoft spokesperson said the institution was acceptable to lend to the enquiry, an AWS spokesperson said "designating unreality providers arsenic gatekeepers isn't worthy the risks of stifling invention oregon raising costs for European companies."

If the Commission's probe finds that the services suffice arsenic important gateways nether the DMA, they would beryllium added to the database of halfway level services for which Amazon and Microsoft are already designated arsenic gatekeepers.

Under the European Union's DMA, which came into unit successful 2022, companies with much than 45 cardinal monthly progressive users and a 75-billion-euro ($86.87 billion) marketplace capitalisation are considered gatekeepers providing a halfway level service.

Companies labelled arsenic specified volition beryllium required to marque their services interoperate with rivals and are not allowed to favour their ain services implicit rivals'. Companies tin beryllium fined up to 10% of yearly planetary turnover for DMA violations.

The Commission said it aimed to reason the investigations wrong 12 months.  

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