What does gatekeeper status mean under EU rules?

Under the Digital Markets Act, gatekeepers are subject to a list of dos and don'ts intended to ensure a level playing field in the market. The designation imposes obligations and restrictions on the designated companies' operations.

Why did Microsoft object to the EU's preliminary finding?

Microsoft pointed to Google Cloud's growing power and said that ignoring Google's expansion and its Gemini AI offering would tilt the market in a harmful way, suggesting the regulator should also scrutinize Google's cloud services.

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EU regulators want Amazon Web Services and Microsoft Azure to be designated as gatekeepers under tech competition rules, after a seven-month investigation.

Yahoo Finance AI19h ago4 min read

Key takeaway

The European Commission has preliminarily determined that Amazon Web Services and Microsoft Azure should be designated as gatekeepers under EU competition law. This classification would subject the two largest cloud providers to new restrictions and obligations designed to ensure fair competition in the European tech market.

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3 Key Points

What happened
The European Commission said Amazon Web Services and Microsoft Azure, the two largest cloud providers globally, should be designated gatekeepers under the Digital Markets Act, which sets out rules to ensure a level playing field. The preliminary finding came after a seven-month investigation.
Why it matters
Gatekeeper status means these cloud services would face new restrictions and obligations designed to limit the power of Big Tech companies in Europe. Amazon argued the assessment overlooks the range of cloud services available to European customers and could discourage European investment and innovation. Microsoft raised concerns that ignoring Google Cloud's growing power could harm competition.
What to watch
Amazon and Microsoft will likely respond formally to the preliminary findings; the designation is not yet final and the companies may challenge the regulators' conclusions.

FAQ

What does gatekeeper status mean under EU rules?: Under the Digital Markets Act, gatekeepers are subject to a list of dos and don'ts intended to ensure a level playing field in the market. The designation imposes obligations and restrictions on the designated companies' operations.
Why did Microsoft object to the EU's preliminary finding?: Microsoft pointed to Google Cloud's growing power and said that ignoring Google's expansion and its Gemini AI offering would tilt the market in a harmful way, suggesting the regulator should also scrutinize Google's cloud services.

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