The European Commission’s provisional position in market investigation with ACM: Microsoft and Amazon cloud services fall under the DMA

With their cloud services, Microsoft and Amazon must comply with the rules for gatekeepers laid down in the Digital Markets Act (DMA). That is the European Commission’s provisional position in a joint investigation with the Netherlands Authority for Consumers and Markets (ACM) into the cloud services Microsoft Azure and Amazon Web Services. Cloud services provide storage, software, and computer power over the internet, without users having to manage these themselves. The cloud services Amazon Web Services and Microsoft Azure are the two largest cloud services in the European Union. The market investigation has revealed that these cloud services form an important gateway between businesses and users in the digital economy.

The DMA contains obligations for the largest digital platforms in the digital economy, which are called gatekeepers. These obligations concern, for example, offering users options for switching providers, and the exchange of data between different systems (data portability). The DMA’s aim is creating a level playing field for all digital companies, regardless of their size. In that way, small businesses will have more growth opportunities in digital markets, and consumers will have more choice in the digital world. Microsoft and Amazon have already been designated by the European Commission as gatekeepers under the DMA for other services.

Microsoft and Amazon now have the opportunity to defend themselves against the European Commission’s provisional position. When both sides have been heard, the European Commission will make a final decision. If the European Commission definitively designates Microsoft and Amazon as gatekeepers for cloud services, they will have six months to comply with the DMA’s obligations for these services.

The European Commission and ACM in a joint investigation team

The DMA offers the option of joint investigation teams by the European Commission and national competition authorities. The investigation into cloud services is an example of a joint investigation team formed by the European Commission and ACM. By combining knowledge and expertise and working together, the European Commission and national competition authorities are able to conduct complex investigations more efficiently and effectively. The European Commission has the exclusive power to enforce the DMA. National competition authorities, including ACM, can conduct investigations in their own countries, and support the European Commission in that context.

Do you wish to report about gatekeepers? Contact ACM

Businesses that have indications about issues that might fall under the DMA can contact ACM by visiting this page: Tip off | ACM.nl. This includes situations where companies experience impediments when accessing platforms’ services, exchanging data, or making their services interoperable with a major digital platform.

ACM’s oversight over the cloud sector

People, businesses, and governments become more and more dependent on cloud services. ACM conducts oversight over this fast-growing cloud market to ensure fair competition and freedom of choice for businesses and consumers. In that context, ACM focuses, for example, on limited switching options and unclear contractual terms. By conducting market studies and investigations, collaborating with the European Commission, and taking action where necessary, ACM wishes to prevent market power from leading to higher prices or less innovation. This way, we ensure that the cloud sector offers room for innovation and healthy competition.