EC Hits Microsoft and Amazon with Cloud Computing Probe

The European Commission launched probes into Amazon and Microsoft’s cloud computing practices. EC would assess if they should be subject to Digital Markets Act rules, as it pursues a fair, open, and competitive environment.

The EC stated it opened investigations to assess if the pair should be designated as gatekeepers for their cloud services, Amazon Web Services and Microsoft Azure. It explained the probes would explore if the companies act as gateways between businesses and consumers, despite not meeting DMA gatekeeper thresholds for size, number of users, and market position. Computing services, including Azure and AWS, are the backbone of many digital services and are crucial for AI development, the EC stated.

The EC aims to conclude the market investigations within 12 months. If they are designated with gatekeeper status, the companies will have six months to ensure full compliance under DMA obligations. Another separate investigation was also launched to assess whether the DMA can effectively tackle practices that may limit competitiveness and fairness in the cloud computing sector in the European Union. The EC is gathering information from relevant market players to assess obstacles to interoperability between cloud services; limited or conditioned access for business users to data; tying and bundling services; and potentially imbalanced contractual terms.