The European Commission is expected to classify the two major US technology conglomerates, Amazon and Microsoft, as Gatekeepers under the Digital Markets Act (DMA) within the coming weeks, subjecting them to stricter regulatory oversight. According to reports citing industry and Commission sources, the DMA will apply to the cloud business for the first time, specifically covering Amazon’s subsidiary, Amazon Web Services (AWS).
However, Google’s cloud offerings are reportedly not slated for initial regulation under the DMA. This apparent exemption stems from what the Commission views as Google’s lesser market power within this particular segment. Market share data cited from the Commission shows AWS holds a 28% market share, Microsoft Azure at 21%, and Google Cloud at 14%. European providers, meanwhile, play a negligible role in the market.
The DMA designates a Gatekeeper as an enterprise possessing particularly high market power and significant market influence. If a company meets this classification, it must adhere to specific European Union mandates. Failure to comply could prompt the Commission to initiate formal proceedings, which, in severe cases, carry penalties of up to ten percent of global annual revenue.
The EU Commission declined to comment on the background of the reports regarding these planned regulatory actions.