EU rules reining in Big Tech will now target cloud services and AI, regulators say

• The DMA currently targets seven 'gatekeepers' (Alphabet, Amazon, Apple, Booking.com, ByteDance, Meta, and Microsoft) and has improved data portability and device interoperability since becoming applicable in May 2023
• Regulators are investigating whether certain AI services should be designated as virtual assistant core platform services and whether Amazon and Microsoft's cloud computing operations should fall under DMA gatekeeper rules
• The Commission ruled out forcing social networks to interoperate with each other, citing 'no clear demand' for such interoperability, and stated it has no plans to change gatekeeper designation criteria

EU Expands Big Tech Regulation to Cloud Services and AI

The European Union is extending its Digital Markets Act (DMA) to target cloud computing and artificial intelligence services, aiming to promote fairer competition after reporting positive results from existing regulations.

Key Developments

EU regulators announced the expansion on April 28, stating the DMA—which became applicable in May 2023—will now scrutinize cloud and AI sectors. The legislation currently designates seven companies as "gatekeepers": Alphabet, Amazon, Apple, Booking.com, ByteDance, Meta Platforms, and Microsoft.

The Commission is actively investigating whether Amazon and Microsoft should be labeled gatekeepers for their cloud computing services and whether the DMA can effectively address anticompetitive practices in this sector. Regulators will also examine if certain AI services qualify as virtual assistant core platform services.

Reported Progress

EU antitrust chief Teresa Ribera emphasized the DMA was "designed to be future-proof and adapt to emerging challenges, for example in AI and cloud." The Commission claims the regulations have improved conditions by enabling easier data transfers between services and greater device interoperability with Big Tech operating systems.

Industry Response and Limitations

Apple criticized the report, arguing it overlooks impacts on user privacy, security, and innovation. The company warned of increased exposure to harmful content, data sharing with untrusted parties, and delayed feature rollouts for EU users.

The Commission declined to mandate interoperability between social networks, citing "no clear demand." It also confirmed no plans to modify gatekeeper designation criteria or existing compliance requirements.

Consumer group BEUC urged stronger enforcement, particularly in emerging digital sectors, as the EU positions itself as a global leader in technology regulation.