The European Union has further intensified its regulatory scrutiny of American tech giants. On Monday, the European Commission announced the launch of three independent investigations into the cloud computing businesses of Amazon and Microsoft to assess whether these two companies should be included under the stricter regulatory scope of the Digital Markets Act (DMA).
Two of the investigations will examine whether Amazon Web Services (AWS) and Microsoft Azure should be designated as &#34;gatekeepers&#34; under the DMA framework, even though neither company currently meets the quantitative thresholds for scale, user numbers, or market dominance as defined by the act. According to the DMA, companies providing core platform services must have over 45 million monthly active users and a market capitalization exceeding €75 billion to be classified as &#34;gatekeepers.&#34;
The third investigation will evaluate whether the existing DMA framework is sufficient to address what the European Commission describes as anti-competitive behavior in the European cloud computing industry. Companies that violate DMA regulations could face fines of up to 10% of their global revenue. The European Commission stated that it expects to complete the investigations into AWS and Azure within 12 months and the assessment of the DMA legal framework within 18 months.
<h2>Regulatory Standards May Break Established Thresholds</h2>
A notable feature of the EU's investigation is that regulators may still classify a company as a &#34;gatekeeper&#34; even if it does not meet the quantitative standards set by the DMA. The criteria for being designated as a &#34;gatekeeper&#34; include: a market capitalization of at least €75 billion over the past three years, annual revenue in the EU exceeding €7.5 billion, at least 45 million monthly active users, and more than 10,000 annual active users, as well as providing core platform services in at least three EU member states.
Teresa Ribera, the EU's antitrust chief, stated that the investigation will examine &#34;whether the existing DMA rules need to be updated so that Europe can keep pace with the rapid development of the cloud computing industry.&#34; She emphasized that cloud computing is crucial for the development of artificial intelligence and digital competitiveness in Europe.
The European Commission noted in its statement that cloud computing &#34;must be provided in a fair, open, and competitive environment&#34; to ensure innovation and Europe's &#34;strategic autonomy.&#34;
<h2>Corporate Responses and Compliance Preparations</h2>
An AWS spokesperson told the media that they believe the European Commission will ultimately conclude that stricter rules are unnecessary. The spokesperson stated:
<blockquote>
&#34;We believe that when the European Commission considers the facts, it will recognize that the cloud computing industry is extremely dynamic, with companies enjoying unprecedented opportunities for innovation and low costs.&#34;
</blockquote>
A Microsoft spokesperson responded that the company is &#34;prepared to contribute to this investigation.&#34; If the European Commission ultimately determines that AWS and Azure constitute &#34;important gateways&#34; between businesses and customers, these services may be added to the list of core platform services. Currently, Microsoft and Amazon already have services such as LinkedIn, Windows PC operating system, Amazon Marketplace, and Amazon Advertising listed as &#34;gatekeepers.&#34;
Once designated as &#34;gatekeepers&#34; in the cloud computing sector, Amazon or Microsoft will need to comply with DMA rules within six months, triggering new obligations including interoperability requirements and preferential treatment for their own products. According to media reports, this legislation has faced criticism from the Trump administration, which stated in February that the DMA unfairly targets American tech companies
The EU's upgrade of regulations on the cloud computing market reflects its emphasis on control over digital infrastructure. With the acceleration of artificial intelligence and digital transformation, cloud services have become a key strategic resource, and the results of this investigation will have a significant impact on the European business strategies of global tech giants

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The EU regulatory upgrade has intensified, launching three independent investigations on Amazon AWS and Microsoft Azure on Monday to assess whether they should be included in the "gatekeeper" regulatory scope of the Digital Markets Act, even though both companies currently do not meet the user and market value thresholds set by the Act. This move indicates that the EU is intervening in digital market governance in a more proactive and flexible manner. If found in violation, companies could face fines of up to 10% of their global annual revenue

- The European Union has intensified its scrutiny of major U.S. tech firms, launching three independent investigations into Amazon and Microsoft's cloud services to assess their potential classification as "gatekeepers" under the Digital Markets Act (DMA).  
- The investigations will evaluate whether Amazon Web Services (AWS) and Microsoft Azure meet the criteria for gatekeepers, despite currently not meeting the specified thresholds for size or market dominance.  
- The EU aims to complete the investigations within 12 months and is considering updating DMA rules to address competitive concerns in the rapidly evolving cloud computing sector.

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The European Union escalates technology regulation and launches antitrust investigations into Amazon and Microsoft's cloud businesses