EU to Expand Regulations to Cloud Services and AI in Big Tech Crackdown

• The DMA currently targets seven major tech companies: Alphabet, Amazon, Apple, Booking.com, ByteDance, Meta Platforms, and Microsoft as 'gatekeepers' to prevent market dominance abuse.
• Regulators are investigating whether certain AI services should be designated as virtual assistant core platform services and whether Amazon and Microsoft's cloud computing services should fall under DMA gatekeeper rules.
• The Commission will not require social networks to be interoperable with each other, citing 'no clear demand' for such functionality, and has no plans to change existing gatekeeper designation criteria.

EU Expands Digital Markets Act to Target Cloud and AI Services

The European Union is extending its Digital Markets Act (DMA) regulations to cover cloud computing and artificial intelligence services as part of its ongoing crackdown on Big Tech dominance, EU regulators announced Tuesday.

Key Developments

The DMA, which became applicable in May 2023, currently targets seven major tech companies: Alphabet, Amazon, Apple, Booking.com, ByteDance, Meta Platforms, and Microsoft. EU antitrust chief Teresa Ribera stated the regulations were "designed to be future-proof and adapt to emerging challenges, for example in AI and cloud."

Regulators are currently investigating whether Amazon and Microsoft should be designated as gatekeepers for their cloud computing services under the DMA framework. The Commission also plans to examine whether certain AI services should be classified as virtual assistant core platform services.

Initial Results

EU regulators reported positive outcomes from existing DMA implementation, including improved data portability for users switching services and greater interoperability between device makers and Big Tech operating systems.

Company Response and Future Plans

Apple criticized the report, arguing it failed to consider impacts on user privacy, security, and innovation. The company warned of increased exposure to harmful content and delays in feature rollouts for EU users.

The Commission stated it has no plans to mandate interoperability between social networks, citing lack of clear demand. The existing gatekeeper criteria and regulatory framework will remain unchanged, deemed "fit for purpose."

Consumer advocacy group BEUC called for stronger enforcement, particularly in emerging digital areas. The expansion reflects the EU's commitment to maintaining competitive markets in rapidly evolving technology sectors worth hundreds of billions in investment.