The European Union is considering implementing a crackdown on Big Tech, particularly targeting major cloud service providers like Amazon Web Services (AWS), Microsoft’s Azure, and Google Cloud. This potential action stems from recent significant outages that raised concerns regarding the concentration of market power among these few providers. The European Commission plans to assess whether these companies should be subjected to new regulations under the Digital Markets Act (DMA).
Historically, these providers have avoided DMA scrutiny due to much of their business stemming from enterprise contracts, making it challenging to measure the actual number of individual users. However, the upcoming investigation could impose fresh obligations on these cloud giants, including enhanced interoperability with competing software, improved data portability for users, and restrictions on practices such as tying and bundling services.
The DMA was introduced in 2023 to regulate the largest technology platforms and prevent anti-competitive behaviors. To date, it hasn’t yet been applied to top cloud providers, despite their significant market presence. Just last month, AWS encountered a major outage lasting 15 hours, significantly impacting many companies, while Microsoft’s Azure faced its own troubles, disrupting essential services. Similarly, Google Cloud has also experienced widespread outages affecting major platforms recently.
If the cloud services are found to fall under the new regulatory framework, penalties for non-compliance could be substantial. Other tech giants like Apple and Meta Platforms Inc. have faced significant fines under the DMA, highlighting the serious implications for non-compliance.
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