Commission eyes up Microsoft and Amazon – again
Last week the EU Commission announced it had opened three market investigations into cloud computing services under the Digital Markets Act (DMA). Two of these investigations will assess whether Amazon and Microsoft should be designated as gatekeepers for their cloud computing services, Amazon Web Services and Microsoft Azure under the DMA, i.e. whether they act as important gateways between businesses and consumers, despite not meeting the DMA gatekeeper thresholds for size, user number and market position. The third market investigation will assess if the DMA can effectively tackle practices that may limit competitiveness and fairness in the cloud computing sector in the EU.
Market investigations into Amazon Web Services and Microsoft Azure
Recent analyses of cloud markets seem to indicate that tMicrosoft Azure and Amazon Web Services occupy very strong positions in relation to businesses and consumers. The Commission will also assess if certain features of the cloud sector may further reinforce the position of Microsoft Azure and Amazon Web Services.
If the Commission finds that Microsoft Azure and Amazon Web Services qualify as important gateways under the DMA, these would be added to the list of core platform services for which Amazon and Microsoft have already been designated as gatekeepers.
Market investigation on the DMA’s application to cloud markets
Furthermore, the Commission is also gathering information from relevant market players to assess whether the current obligations under the DMA are effective in addressing practices that limit competitiveness or are unfair in the cloud sector. Amongst other things, the investigation will cover obstacles to interoperability between cloud computing services, limited or conditioned access for business users to data, tying and bundling services and potentially unfair contractual terms.
Next Steps
Should the Commission conclude Microsoft and Amazon meet the criteria to be designated as gatekeepers for their cloud computing services under the DMA, Amazon and Microsoft would have six months to ensure full compliance of their designated cloud computing services with the DMA obligations.
The market investigation on the DMA’s application to cloud markets will result in a final report to be published within 18 months, which may propose the update of DMA obligations in respect to cloud by way of a delegated act pursuant to Article 12 and 49 DMA.