Digital Markets Act: EU zeroes in on Amazon and Microsoft’s cloud services

Brussels – Virtual data storage spaces, digital archives, online databases, and software: Amazon and Microsoft’s cloud services,  respectively, AWS and Azure, can be defined as “gatekeepers” under the European Digital Markets Act (DMA) and must therefore comply with European legislation. The European Commission informed the two internet operators of its preliminary findings and issued initial requests for them to bring their practices into line with the regulations.

 In force since 1 January 2023, the Digital Markets Regulation clearly sets out when a web operator is “large” and therefore qualifies as a gatekeeper, acting as an access controller by virtue of its market share. This applies to all platforms and operators with a turnover of at least 7.5 billion euros in the EU over the previous three years, a market valuation exceeding 75 billion euros, and a monthly number of end users of at least 45 million, combined with 10,000 business users in the EU. 

According to the European Commission, AWS and Azure, respectively the largest and second-largest cloud computing services in the EU, represent “an important gateway between businesses and their customers in the EU… despite them not meeting the DMA’s quantitative thresholds for designation” as gatekeepers. Assessments carried out in Brussels suggest that “both Amazon and Microsoft appear to hold an entrenched and durable position in the EU cloud computing sector, as is evidenced by AWS’s and Azure’s leading market position over many years.” This is why they are being asked to comply with the digital markets rules set out in the DMA. 

These are preliminary notices and findings. Amazon and Microsoft have the possibility to exercise their rights of defence, including by examining the documents in the Commission’s investigation file. The Commission will continue to carry out its investigations. Should the findings be confirmed, the companies will have to comply within six months of the final notification. 

“In Europe, we are increasingly reliant on cloud computing services. From consumers to businesses large and small, to public administrations,” the Executive Vice-President for a Clean, Fair and Competitive Transition, Teresa Ribera, stressed. “These services will only continue to grow in importance, which is why it is essential that we ensure a well-functioning and competitive market, and a level playing field for all cloud service providers,” she added.