EU Initiates Investigations into Amazon and Microsoft Cloud Services

Post by : Bianca Suleiman

The European Commission has initiated three formal inquiries into the cloud computing sector, marking a pivotal enforcement action since the implementation of the Digital Markets Act (DMA). These investigations will determine if Amazon Web Services (AWS) and Microsoft Azure qualify as gatekeepers under this new competition regulation.

Although they do not meet the standard thresholds outlined by the DMA, the Commission believes the magnitude and strategic significance of their cloud operations warrant further scrutiny. Officials observed that both firms deliver crucial infrastructure for countless businesses across the EU, necessitating an evaluation of whether their market practices could hinder competition or restrict fair access for smaller providers.

As part of this investigation, officials will analyze the structure of cloud services, how clients are invoiced or integrated into ecosystems, and whether certain technical or contractual stipulations create obstacles for competitors. The Commission seeks to ascertain if existing regulations are robust enough to avert practices that could skew the burgeoning cloud sector towards a few prevailing players.

As per the announcement, all three inquiries are anticipated to be completed within the next 12 months, providing regulators with a clearer understanding of the operations within the EU's cloud market and identifying areas where future enforcement may be necessary.

Microsoft expressed its readiness to assist in the investigation, while AWS asserted that Europe’s cloud ecosystem remains notably competitive and innovative.