The European Commission is looking into the market dominance of Amazon Web Services, Microsoft’s Azure, and Google Cloud, potentially subjecting them to new regulations under the Digital Markets Act. Recent cloud outages have brought attention to the risks of relying on a few major players in the industry.
These cloud giants have so far evaded the Digital Markets Act due to their enterprise-focused business models, making it challenging for regulators to assess their user base accurately. However, the upcoming investigation will determine if additional measures are necessary, such as enhancing interoperability with competitors and ensuring data portability for users.
The European Commission and Microsoft have refrained from commenting on the matter, while Amazon Web Services and Google Cloud have yet to respond to inquiries. The Digital Markets Act, introduced in 2023, aims to regulate major tech platforms and has not been enforced on cloud providers despite their significant market share.
Recent service disruptions have tarnished the reputations of Amazon Web Services and Microsoft Azure, affecting a wide range of companies and services. These incidents underscore the importance of evaluating the reliability and resilience of cloud infrastructure in the face of increasing digital dependency.
If cloud services fall under the scope of the Digital Markets Act, violations could result in substantial penalties. Past enforcement actions against Apple and Meta Platforms have led to significant fines under the legislation, highlighting the potential consequences for non-compliance in the tech industry.
