European Commission lines up Amazon and Microsoft for cloud gatekeeper status

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Preliminary position calls for designation under the Digital Markets Act

The European Commission has reached the preliminary position that Azure and AWS should be designated as gatekeepers under the Digital Markets Act (DMA).

The gatekeeper designation would mean requirements imposed on the cloud giants, with fines of up to 10 percent of worldwide turnover if those requirements are not met.

According to the Commission, AWS and Azure, "the largest and second largest cloud computing services in the EU respectively," are a gateway between businesses and their customers in the bloc.

"They both have vast and entrenched user bases and appear to benefit from lock-in effects and high switching costs, in addition to a large ecosystem."

Although the cloud giants did not meet the DMA's quantitative thresholds for designation (such as user numbers), their market positions have attracted scrutiny. Should the gatekeeper designations stick, obligations regarding interoperability, access to data, and...

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