### EU Launches Investigations into Amazon and Microsoft Cloud Services Amidst Growing Concerns Over Market Dominance The European Commission (EC) has initiated a series of investigations into the cloud computing services provided by Amazon and Microsoft, specifically targeting Amazon Web Services (AWS) and Microsoft Azure. This action is part of the EU's broader strategy to ensure fair competition in the digital market, particularly under the framework of the Digital Markets Act (DMA). The investigations aim to assess whether these companies should be classified as "gatekeepers" in the cloud sector, a designation that would subject them to stricter regulatory scrutiny and obligations. The move comes in response to the significant market share held by these US-based providers, which dominate approximately two-thirds of the cloud market in the EU [https://24newshd.tv/18-Nov-2025/amazon-microsoft-cloud-services-face-tougher-eu-rules]. ### Structure of the Investigations and Their Implications 1. **Scope of Investigations**: - The EC has launched three separate probes focusing on AWS and Azure to evaluate their market power and practices under the DMA [https://www.cnbc.com/2025/11/18/eu-probes-amazon-microsofts-cloud-services-for-potential-curbs]. - The investigations will determine if these services should be designated as gatekeepers, which would impose additional regulatory requirements [https://www.lexisnexis.co.uk/legal/news/commission-launches-investigations-into-cloud-computing-services-under-the-eu-dma]. 2. **Market Context**: - AWS and Azure are the leading cloud service providers, with Google Cloud trailing behind. The EC's decision not to include Google in the current investigations is based on preliminary evidence suggesting its lesser market impact [https://24newshd.tv/18-Nov-2025/amazon-microsoft-cloud-services-face-tougher-eu-rules]. - The investigations are part of a larger effort to enhance competition and resilience in the EU's digital economy, particularly in light of recent service outages experienced by major cloud clients [https://www.devdiscourse.com/article/technology/3701682-big-tech-under-scrutiny-eus-landmark-probe-into-cloud-giants]. 3. **Potential Outcomes**: - If AWS and Azure are designated as gatekeepers, they could face stricter regulations, including potential fines of up to 10% of their global turnover for any violations of the DMA [https://24newshd.tv/18-Nov-2025/amazon-microsoft-cloud-services-face-tougher-eu-rules]. - The EC aims to conclude these investigations within a year, which could lead to significant changes in how these companies operate within the EU [https://www.europeaninterest.eu/eu-investigates-amazon-and-microsoft-cloud-businesses-under-the-digital-market-act]. ### Supporting Evidence and Market Dynamics - **Market Share**: AWS and Azure together control about two-thirds of the cloud market in the EU, highlighting their dominant position [https://24newshd.tv/18-Nov-2025/amazon-microsoft-cloud-services-face-tougher-eu-rules]. - **Service Disruptions**: Recent outages affecting major clients, such as Alaska Airlines, have raised concerns about the reliability of these services, further justifying the need for regulatory scrutiny [https://www.cnbc.com/2025/11/18/eu-probes-amazon-microsofts-cloud-services-for-potential-curbs]. - **Regulatory Framework**: The DMA is designed to create a more equitable digital market, with specific rules aimed at preventing anti-competitive practices among large tech firms [https://www.devdiscourse.com/article/technology/3701682-big-tech-under-scrutiny-eus-landmark-probe-into-cloud-giants]. ### Conclusion: Implications for the Cloud Computing Landscape In summary, the European Commission's investigations into Amazon and Microsoft's cloud services represent a significant step towards regulating the dominance of US tech giants in the EU market. The outcomes of these probes could reshape the competitive landscape of cloud computing in Europe, ensuring that smaller providers have a fair chance to compete. 1. **Investigations Launched**: The EC has initiated three probes into AWS and Azure under the DMA. 2. **Market Dominance**: AWS and Azure hold a combined two-thirds market share in the EU, prompting regulatory action. 3. **Potential Designation**: The investigations will determine if these companies should be classified as gatekeepers, leading to stricter regulations. 4. **Timeline**: The EC aims to conclude the investigations within a year, with significant implications for the cloud services market in Europe. The outcome of these investigations will be closely watched, as they could set a precedent for how digital markets are regulated in the future [https://www.europeaninterest.eu/eu-investigates-amazon-and-microsoft-cloud-businesses-under-the-digital-market-act].