Cloud and AI in focus for DMA

The European Commission has completed its first review of the Digital Markets Act. While it concluded that the legislation is broadly working and does not currently need to be revised, the review contained a clear signal as to where regulatory attention will be focussed next: cloud services and artificial intelligence.

Despite cloud's critical importance to Europe's digital economy, no cloud provider has yet been designated as a gatekeeper. The Commission is now running three market investigations - examining whether Microsoft Azure and Amazon Web Services should face gatekeeper designation, as well as whether the DMA's existing obligations are capable of addressing the specific concerns that arise in cloud markets. That last investigation could yet result in the rules being updated.

On AI, the Commission has for now resisted calls to overhaul the DMA in response to AI's rise, preferring instead to use existing tools - regulatory dialogue, specification proceedings and where necessary traditional competition law. But it has explicitly kept the door open to further intervention, including the potential designation of AI services as virtual assistants or the creation of an entirely new category of core platform service.

What unites both areas is the Commission's underlying strategic objective: digital sovereignty. Cloud and AI services are the foundations on which Europe's technological independence depends.  The Commission has made clear that it will use the DMA to make targeted interventions in both areas. Read our full briefing, Digital Markets Act: cloud services and AI in focus, for more detail.