European Commission to Investigate Cloud Computing Services
Brussels- The European Commission has opened three market investigations on cloud computing services under the Digital Markets Act (DMA). Two investigations will assess whether Amazon and Microsoft should be designated as gatekeepers for their cloud computing services under the DMA. The third market investigation will assess the effectiveness of the DMA’s existing obligations in relation to the cloud computing sector.
Max von Thun, Open Markets Director of Europe & Transatlantic Partnerships, issued the following statement:
“Europe’s dependence on a handful of U.S. tech giants for essential cloud infrastructure undermines the continent’s competitiveness, its resilience and its sovereignty. It gives those giants disproportionate influence over the development of Europe’s digital economy – particularly when it comes to artificial intelligence – while exposing Europe to coercion and interference by foreign corporations and states.
“Today’s announcement on Amazon and Microsoft’s potential designation under the DMA is an important first step towards building a truly open, diverse and resilient European cloud market. The Open Markets Institute has long called for dominant cloud computing providers to be designated under the DMA, given their widely-documented use of unfair and anti-competitive tactics to lock out rival providers and lock in their customers. We also welcome a separate investigation examining the applicability of the DMA’s obligations in relation to the cloud sector, given our view that the legislation will need to be adapted if it is to be truly effective in tackling Big Tech’s unfair cloud practices.
“We urge the Commission to proceed as quickly as possible towards designation of Amazon and Microsoft, given the DMA has already been in effect for nearly three years. The Commission must also ensure that other relevant legislation, including the Data Act and the upcoming Cloud and AI Development Act, work together towards the goal of breaking Big Tech’s suffocating grip on Europe’s cloud infrastructure. The future of Europe’s cloud sector – and its tech industry as a whole – depends on it.”
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