This article first appeared on GuruFocus.

Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) fell about two percent on Tuesday morning after the European Commission began reviewing their cloud businesses under the Digital Markets Act.

The regulator is examining whether Amazon Web Services and Microsoft Azure function as gateways for cloud customers even though they do not meet the law’s size or user thresholds. The review will look at their influence in hosting, storage and related cloud services.

• Warning! GuruFocus has detected 6 Warning Sign with MSFT.

• Is MSFT fairly valued? Test your thesis with our free DCF calculator.

A separate track will evaluate whether the DMA can address industry concerns such as limited data access for business clients, service bundling and obstacles that make it harder for companies to move or integrate workloads across different cloud platforms.

The commission expects to wrap up the fact-finding phase within twelve months and issue a public report inside eighteen months. Companies found to hold gatekeeper roles would have half a year to adjust practices to meet DMA requirements.

Earlier in the year, the U.K.’s competition regulator said both firms held significant unilateral market power in cloud computing and asked for deeper scrutiny.

This article first appeared on GuruFocus.

Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) fell about two percent on Tuesday morning after the European Commission began reviewing their cloud businesses under the Digital Markets Act.

The regulator is examining whether Amazon Web Services and Microsoft Azure function as gateways for cloud customers even though they do not meet the law’s size or user thresholds. The review will look at their influence in hosting, storage and related cloud services.

• Warning! GuruFocus has detected 6 Warning Sign with MSFT.

• Is MSFT fairly valued? Test your thesis with our free DCF calculator.

A separate track will evaluate whether the DMA can address industry concerns such as limited data access for business clients, service bundling and obstacles that make it harder for companies to move or integrate workloads across different cloud platforms.

The commission expects to wrap up the fact-finding phase within twelve months and issue a public report inside eighteen months. Companies found to hold gatekeeper roles would have half a year to adjust practices to meet DMA requirements.

Earlier in the year, the U.K.’s competition regulator said both firms held significant unilateral market power in cloud computing and asked for deeper scrutiny.