EU Expands Digital Markets Act to Cloud, Probes Microsoft Gatekeeper Status
The EU plans to extend its Digital Markets Act to cloud computing and AI, assessing whether Microsoft and Amazon should be designated gatekeepers with new interoperability and data portability obligations. The move could increase compliance costs and technical requirements for Microsoft’s Azure platform, potentially affecting profit margins and service pricing.
1. EU to Extend DMA to Cloud and AI
The European Commission will expand its Digital Markets Act, originally effective May 2023 for major tech platforms, to cover cloud computing and artificial intelligence services. This includes evaluating whether virtual assistant core platform services should be designated under the legislation’s gatekeeper framework.
2. Microsoft Cloud Services Under Gatekeeper Review
Regulators are investigating if Microsoft’s Azure platform meets criteria for gatekeeper status alongside Amazon Web Services, which would subject them to strict requirements on interoperability, data portability and non-discrimination. Failure to comply could result in significant fines and mandated changes to service operations.
3. Implications for Microsoft’s Azure Platform
Designation as a gatekeeper would introduce new technical and reporting obligations, likely raising compliance expenses and necessitating adjustments in pricing or feature rollout. These changes could impact Azure’s profit margins and its competitive positioning against rival cloud providers.