The EU Commission is launching a new investigation into whether certain services from US tech companies Amazon and Microsoft must adhere to strict European digital rules.
Specifically, it is about so-called cloud computing services from the two companies and whether these are particularly crucial for consumers and companies on the market, as the Brussels authority announced.
Amazon and Microsoft are leading providers of so-called cloud computing services. This is about providing virtual infrastructure. With cloud computing, you can use computer services such as storage space, programs or computing power over the Internet without having to own or operate the necessary hardware or software yourself.
Commission emphasizes importance of services for Europe
The EU Commission said cloud market analyzes from recent years indicate that Microsoft’s Azure service and Amazon’s Web Services have a very strong position with regard to companies and consumers. At the same time, their user numbers and market position did not reach the necessary thresholds in order to have to comply with stricter laws.
Commission Vice-President Teresa Ribera said cloud computing services are crucial for Europe’s competitiveness and resilience. “We want this strategically important sector to grow under fair, open and competitive conditions,” added Ribera.
Stricter requirements
The Brussels authorities say they want to complete the investigation into the two US companies within a year. If the EU Commission comes to the conclusion that both must adhere to the strict requirements for so-called gatekeepers of the Digital Markets Act (DMA), Microsoft and Amazon will have six months to adapt to the rules.
In addition, the EU Commission is also investigating whether the DMA is fundamentally sufficient to ensure fair competition in the cloud computing sector.
There has been repeated criticism of European digital laws from the USA in the past. US President Donald Trump described it as anti-competitive. The EU Commission announced that it would present plans to simplify various EU digital rules on Wednesday.
Significantly more seasonal workers are employed at Amazon
In view of large order quantities in the run-up to Christmas, the online giant Amazon has significantly increased its staff. Amazon Germany announced in Munich that around 12,000 seasonal workers were hired, around 3,000 more than a year earlier. The Black Friday discount campaign is coming up at the end of November. A few weeks later is Christmas – two occasions that will drive up orders on Amazon.
The temporary employees work in the logistics locations, for example as sorters. It’s not about Amazon parcel couriers, they work as subcontractors.
Amazon has had its own delivery service in Germany for ten years now, which delivers some of the goods ordered from Amazon itself. Since then, the company has delivered around five billion parcels in Germany. According to the Federal Network Agency, Amazon is the second largest parcel deliverer in Germany behind market leader DHL; the US giant accounts for between 15 and 25 percent of the shipments delivered.
According to the Federal Cartel Office, its market share in online trading in Germany is more than 60 percent. Here Amazon competes with companies like the Hamburg mail order company Otto.
The entire parcel industry is increasing staff
The majority of seasonal workers at Amazon in Germany started in October, the rest in November. Your employment contracts are valid until the end of the year. Amazon permanently employs around 40,000 people in Germany. One reason for the additional need for seasonal workers is new locations, such as the distribution centers in Lahntal (Hesse) and Viernheim (Baden-Württemberg).
Seasonal fluctuations are common for online retailers and parcel services, and competitor DHL is also temporarily increasing its staff: As in previous years, the Bonn-based logistics company has hired around 10,000 seasonal workers. Some of them are still busy until January and therefore longer than at Amazon. This is due to the returns business, which hardly plays a role at Amazon Germany: In Bad Hersfeld, the logistics company does take some care of returned fashion. However, the vast majority of returns go abroad, for example to the Amazon returns center in Bratislava (Slovakia).
Amazon shares listed on the NASDAQ temporarily lost 1.86 percent to $228.55.
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MUNICH (dpa-AFX)
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