The European Commission, together with the Autoriteit Consument & Markt ACM), launched three comprehensive investigations into cloud services under the Digital Markets Act (DMA) in early November. For the first time, the Commission and the Dutch regulator are joining forces to combat abuse of power, barriers to switching and unfair market practices among major international cloud players.
The DMA targets the largest digital platforms, the so-called gatekeepers, and requires them to be more open and honest with customers and competitors. The goal is to better protect consumers and businesses and increase their choices in the digital infrastructure. The DMA allows for firm interventions, such as high fines, stricter rules for transferring data and measures against mandatory combining or linking of services. Cloud providers Amazon Web Services, Microsoft Azure and Google Cloud were recently included because they play a crucial role in the European economy and recent global outages had major consequences.
This investigation is special because of both its scope and method. For the first time, national regulators such as the ACM are participating in a joint investigation team with the Commission in Brussels. Together they are conducting three sub-investigations: one on switching barriers, one on interoperability and access to data, and one on the effectiveness of the DMA in the cloud sector. Signs of possible violations can be reported directly to the ACM. This call finds broad support in both the Netherlands and other European countries.
Across Europe, the focus on privacy, security and digital sovereignty is growing. Cloud providers must be increasingly transparent about their compliance with privacy laws, and many countries want to reduce their dependence on large foreign providers. Therefore, investments in their own digital infrastructure and government-industry collaborations are being made more frequently. European cooperation, such as now between the ACM and the Commission, is indispensable to limit the power of large technology companies and create a fairer market.
The results of the investigation largely determine the future of the European cloud market. If Amazon, Microsoft and Google are effectively designated as gatekeepers under the DMA, they will face tougher obligations and hefty penalties for violations. The European Union wants to prevent a small number of cloud providers from dominating Europe's digital infrastructure without sufficient countervailing power and control. This message is widely supported by the ACM and other national regulators.
