euronews.com
EU Lawmaker Urges Inclusion of Cloud, AI in Digital Markets Act to Counter US, China Dominance
German MEP Andreas Schwab advocates for including cloud and AI services under the EU's Digital Markets Act (DMA) to prevent US and Chinese market dominance, citing the UK's CMA findings on Amazon and Microsoft's sustained above-cost returns in the cloud sector and the rapid growth of AI services.
- What are the immediate implications of excluding cloud and AI services from the EU's Digital Markets Act?
- The EU's Digital Markets Act (DMA) urgently needs to include cloud and AI services to prevent US and Chinese dominance. German MEP Andreas Schwab highlights the risk of market control by companies attracting substantial investments, limiting user choice. The UK's CMA already notes sustained above-cost returns for Amazon and Microsoft in cloud services, indicating potential anti-competitive practices.
- How do the UK's CMA findings on cloud market dominance inform the debate on regulating cloud and AI under the DMA?
- The current DMA designates only 24 core platform services, excluding rapidly expanding cloud and AI sectors. This oversight allows major players like Amazon and Microsoft (in cloud) and Microsoft-backed OpenAI (in AI) to consolidate market power, potentially hindering innovation and user choice. The CMA's findings in the UK support these concerns, highlighting substantial above-cost returns for major cloud providers and the barriers to entry created by large investments.
- What are the long-term risks to European digital sovereignty if cloud and AI services remain unregulated under the DMA?
- Failure to regulate cloud and AI under the DMA could lead to a future where European digital sovereignty is severely compromised, with US and Chinese companies controlling crucial infrastructure. This would impact innovation, data security, and ultimately, the ability of European businesses to compete. The interdependency of cloud and AI further underscores the need for proactive regulation to address potential monopolies before they solidify.
Cognitive Concepts
Framing Bias
The article frames the issue around the urgency of EU action to prevent American and Chinese dominance. The headline (if there was one) would likely emphasize this aspect. The quotes from Schwab are prominently featured and support this narrative. This framing could influence the reader to support regulation without fully considering the potential downsides or alternative viewpoints.
Language Bias
The language used is generally neutral but employs terms that suggest urgency and potential threat, such as "urgently need", "dominate the market", and "massive investments." These words could influence the reader's emotional response and perception of the issue. More neutral alternatives could include "require", "become significant players", and "substantial investments.
Bias by Omission
The article focuses heavily on the perspective of Andreas Schwab and the potential threats of American and Chinese dominance, potentially omitting other viewpoints on the necessity or implications of regulating cloud and AI services under the DMA. It mentions a complaint filed by Google against Microsoft but doesn't delve into the details or other perspectives on this competition. The article also briefly mentions the UK's CMA investigation but doesn't explore its findings in depth. These omissions could limit the reader's ability to form a fully informed opinion.
False Dichotomy
The article presents a somewhat false dichotomy by framing the situation as a choice between EU regulation and American/Chinese dominance. It doesn't fully explore alternative regulatory approaches or the potential benefits of a more open, competitive market without heavy-handed regulation. The urgency implied also suggests an eitheor situation: act now or face complete market domination.
Gender Bias
The article primarily features male voices, specifically Andreas Schwab and Daniel Friedlaender. While this may reflect the individuals involved in the discussion, it lacks a balanced representation of gender perspectives on this issue. More female voices from experts in the field could offer a broader view.
Sustainable Development Goals
Regulation of cloud and AI services under the DMA could prevent market dominance by a few powerful companies, promoting fairer competition and potentially reducing the inequality of access to these crucial technologies. The current situation, where a few large companies control the market, exacerbates existing inequalities. The quote "We want a strong European commitment of the European Commission to make sure that cloud and AI are considered core platform services under the Digital Market Act (DMA) because there is so much potential that if we act now the choice remains for the users and not in the hands of those that can attract investment and thereby can start controlling the market" highlights the concern about market control and its impact on users.