EU Regulators Set to Include AWS and Azure Under Digital Markets Act
Amazon's and Microsoft's cloud units are set to fall under the EU's Digital Markets Act, according to a report from Bloomberg. The European Union's regulatory authority is preparing to release its decision on which companies will be subject to the law. People familiar with the situation have confirmed that Amazon Web Services (AMZN) and Microsoft Azure (MSFT) will likely be included. This means they would need to comply with regulations aimed at promoting competition in digital markets.
The EU's Digital Markets Act is a piece of legislation designed to prevent companies from abusing their dominant market position. By including cloud units, the regulators are trying to ensure that these businesses do not stifle innovation and competition.
Amazon Web Services (AMZN) and Microsoft Azure (MSFT) are two of the largest players in the cloud computing market. Amazon's cloud unit is a significant contributor to its revenue, while Microsoft's Azure platform has been gaining traction in recent years.