"Amazon Web Services (AWS) and Microsoft's dominant hold on the cloud computing market is to come under renewed scrutiny, with the European Commission (EC) set to investigate the pair's activities under the terms of the Digital Markets Act (DMA). The EC has opened two separate investigations into AWS and Microsoft, which seek to ascertain if the suppliers should be brought in-scope of the DMA by being designated "gatekeepers" in recognition of how much control they wield in the cloud computing market."
"As per the terms of the DMA, gatekeepers are typically large tech firms that are able to control access to digital services markets and, in turn, make it difficult for smaller companies to gain a foothold in them. They must also meet a specific set of market value, revenue generation and user number metrics to be labelled gatekeepers, and are expected to abide by rules set by the EC to encourage competition to thrive within the parts of the digital services market they operate in."
The European Commission has opened two investigations into Amazon Web Services and Microsoft under the Digital Markets Act to assess whether their cloud services should be designated gatekeepers. Gatekeeper designation requires meeting thresholds for market value, revenues, and user numbers and carries obligations designed to protect competition in digital services markets. Gatekeepers must follow EC rules to prevent exclusion of smaller competitors, with fines up to 10% of annual revenue for first violations and 20% for repeat offences. Neither company currently meets the DMA thresholds, but the EC will investigate for up to 12 months with a final report due within 18 months. If designated, each firm would have six months to comply.
Read at ComputerWeekly.com
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