EU Probes Microsoft Azure and Amazon Web Services for Potential Gatekeeping

Microsoft and Amazon have found themselves in hot water once again in the European Union. A new report by Reuters suggests that The European Commission has launched three market investigations under the Digital Markets Act (DMA) that focuses on cloud computing services.

Per the official press release, two of the probes will evaluate whether Amazon Web Services (AWS) and Microsoft Azure should be classified as DMA gatekeepers, despite not meeting current thresholds for size, user numbers, or market position. This would determine if the platforms act as key gateways between businesses and consumers.

A third investigation will investigate whether the DMA effectively addresses practices that may limit competition or fairness in the EU cloud market. Areas under review include obstacles to interoperability, restricted access to business data, bundling or tying services, and potentially unbalanced contractual terms.

It’s worth noting that cloud computing is one of the most important part of digital services and AI development. The Commission highlighted the need for a fair, open, and competitive environment to foster innovation, trust, and Europe’s strategic autonomy.The investigations on AWS and Azure are expected to conclude within 12 months.

If the Commission finds any of them at fault, the companies will have six months to make their cloud services inline with DMA rules. Moreover, Microsoft is ready to cooperate in the inquiry. No official words from Amazon has been reported at the time of writing this.

To catch you up, Microsoft recently also agreed to unbunble Teams after the EC’s intervention, which led the company to escape from a hefty fine. It’ll be interesting to see how this investigation pans out down the line. If there’ll be any update on this matter, we’ll update it here.