EU to Expand Digital Markets Act to Cloud and AI; Apple Warns Privacy Risks
The EU will expand its Digital Markets Act to cloud computing and AI, evaluating whether Amazon and Microsoft should be designated as gatekeepers. Apple criticized the move, highlighting risks to user privacy, security and seamless experience along with delays in feature access.
1. DMA Extension to Cloud and AI
The EU Commission plans to broaden the scope of the Digital Markets Act, which became applicable in May 2023, to include cloud computing and artificial intelligence services in order to promote fairer competition and future-proof the framework.
2. Probes into Cloud Gatekeepers
Regulators are investigating whether Amazon Web Services and Microsoft Azure meet the criteria to be designated as gatekeepers under the expanded DMA, a status that would impose obligations to prevent abuse of market dominance in cloud and AI sectors.
3. Apple's Criticism
Apple warned that the proposed DMA extension could expose users to harmful content, compromise security and privacy, disrupt the seamless user experience and delay the rollout of new features by forcing alternative distribution and data sharing with third parties.
4. Future Enforcement
The Commission confirmed it will retain existing gatekeeper designation criteria and the current list of dos and don’ts, will not mandate interoperability for social networks lacking user demand, and will continue monitoring compliance under the expanded rules.