Cloud Computing Under the EU Digital Markets Act: Key Insights from Industry Roundtable

The European Commission convened a stakeholder roundtable to discuss the application of Article 19 of the Digital Markets Act (DMA) to cloud computing services. The meeting brought together cloud infrastructure providers and business users to address regulatory requirements aimed at ensuring contestability and fairness in the digital single market, according to an official European Commission announcement.

Article 19 of the DMA specifically targets “gatekeepers”—large digital platforms that provide a core platform service—to prevent them from using their market position to stifle competition. In the context of cloud computing, this involves examining how providers manage data portability, interoperability, and the potential for “vendor lock-in,” where customers find it technically or financially impossible to switch providers.

The roundtable focused on the technical and operational hurdles business users face when attempting to migrate workloads between different cloud environments. Regulators are evaluating whether current industry practices align with the DMA’s goal of creating a more open digital ecosystem across the European Union.

How does the DMA affect cloud computing services?

The Digital Markets Act imposes a set of “dos and don’ts” on designated gatekeepers to ensure they do not favor their own services over those of competitors. For cloud computing, this means providers must allow business users to transition their data and applications to other services without facing prohibitive costs or technical barriers, according to the European Commission’s regulatory framework.

Key areas of focus under Article 19 include:

• Interoperability: Ensuring that different cloud services can work together seamlessly so users can employ multi-cloud strategies.
• Data Portability: The ability for a customer to move their data from one provider to another in a structured, commonly used, and machine-readable format.
• Switching Charges: Addressing “egress fees,” which are the costs some providers charge customers to move data out of their cloud environment.

These measures are designed to prevent gatekeepers from leveraging their dominance in one area of the tech stack to capture the entire cloud market, a practice the EU seeks to curb to maintain a competitive digital single market.

Why is the European Commission hosting these roundtables?

The Commission uses these sessions to gather evidence from the actual users of cloud services—the businesses—and the providers who build the infrastructure. This feedback helps regulators determine if the existing rules are sufficient or if more granular enforcement actions are needed to prevent anti-competitive behavior.

According to the Commission, the goal is to identify specific “bottlenecks” that prevent a competitive market. By hearing from both providers and users, the EU can better understand the technical limitations of data migration versus the strategic decisions made by providers to discourage switching.

What happens next for cloud providers in the EU?

The insights gathered from the stakeholder roundtable will likely inform future compliance audits and potential regulatory updates. If the Commission finds that gatekeepers are not meeting the requirements of Article 19, it has the authority to impose significant fines or mandate changes to how these companies structure their cloud services.

Cloud providers will need to demonstrate that they are providing a “fair and open” environment. This includes providing clear documentation for APIs and ensuring that the cost of moving data does not serve as a financial deterrent to switching providers.