EU to Probe Amazon Web Services Under Digital Markets Act for Cloud and AI
The EU plans to extend its Digital Markets Act to examine whether Amazon Web Services should be designated a cloud and AI gatekeeper, which would impose new competition obligations. Since May 2023, the DMA has improved data portability and interoperability, and regulators aim to tackle anticompetitive practices in cloud and AI.
1. Digital Markets Act Expansion
The EU Commission announced plans to apply the Digital Markets Act’s existing framework to cloud computing and AI services, targeting dominant providers like Amazon Web Services and Microsoft Azure to ensure fair competition.
2. Gatekeeper Designation Criteria
Regulators will assess whether AWS meets the gatekeeper criteria—such as controlling access to services and data portability thresholds—and could impose dos and don’ts to curb anticompetitive behavior.
3. Early DMA Results
Since its May 2023 enforcement, the DMA has enabled easier data transfers between services and improved interoperability for device makers, prompting regulators to seek similar gains in cloud and AI sectors.
4. Potential Impacts and Next Steps
If AWS is designated a gatekeeper, Amazon would face new obligations on service bundling, data sharing, and interoperability; the Commission will monitor responses before finalizing any regulatory changes.