EU Plans DMA Expansion to Cloud and AI, Targeting AWS and Azure Gatekeepers
The EU’s Digital Markets Act, effective May 2023, has enhanced data portability and device interoperability for millions of users. Regulators plan to extend DMA obligations to cloud computing and AI services, potentially designating Amazon Web Services, Microsoft Azure and core virtual assistants as gatekeepers.
1. Digital Markets Act Achievements
The EU Commission’s Digital Markets Act came into effect in May 2023, imposing obligations on gatekeeper firms including Alphabet, Amazon, Apple, Booking.com, ByteDance, Meta and Microsoft. Regulators report that the DMA has eased data transfer for users switching services and improved interoperability for device makers with dominant operating systems.
2. Targeting Cloud Computing Services
Regulators announced plans to apply the DMA framework to cloud computing, investigating whether Amazon Web Services and Microsoft Azure should join Alphabet’s Google Cloud as designated gatekeepers. This move would subject these platforms to rules preventing self-preferencing, requiring openness and data portability in cloud services.
3. Extending to AI and Virtual Assistants
The EU intends to identify core platform AI services, such as virtual assistants, for potential gatekeeper designation under the DMA. Regulators will assess if designating these services will promote competition and curb anticompetitive practices in emerging AI markets.
4. Industry Reactions and Next Steps
Apple warned that increased interoperability may compromise user privacy, security and innovation. Regulators counter that there is no current demand for social network interoperability, and they plan no changes to gatekeeper criteria or dos and don’ts lists, viewing the existing framework as fit for purpose.