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DMA should urgently apply to cloud and AI, lead lawmaker warns

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DMA should urgently apply to cloud and AI, lead lawmaker warns

According to German MEP Andreas Schwab, the digital EU regulation should apply to cloud and AI services to prevent their providers from dominating the market before it’s too late.

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Big tech’s cloud and AI services urgently need to be regulated by the EU’s landmark platform regulation the Digital Markets Act, otherwise American and Chinese competitors will dominate the market, German European People’s Party MEP Andreas Schwab said at an event in Brussels on Wednesday.

“We need a common European strategy on how to face the digital strength” of China and the US, the lawmaker said, adding: “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.”

There are currently 24 core platform services which fall under the DMA, the EU digital antitrust regulation which entered into force in 2022. They are provided by the so-called “Gatekeepers” – Alphabet, Amazon, Apple, ByteDance, Meta, Microsoft, Booking – designated by the European Commission as big enough to be regulated by the DMA. But cloud and AI services, despite their exponential growth worldwide remain untouched.

In the United Kingdom, the market dominance of Amazon and Microsoft in the cloud sector was flagged on Tuesday by the British Competition and Markets Authority (CMA) in the provisional findings of an investigation into the sector launched in October 2023. “We have provisionally found that Amazon Web Services and Microsoft have been generating sustained returns from their cloud services substantially above their cost of capital in cloud services for a number of years,” it said.

The CMA also found that large investments can foreclose competitors: “There are also economies of scale, whereby larger cloud providers have lower ongoing costs. The largest cloud providers are making very large investments to expand their services in coming years, and while this investment can have procompetitive effects and benefit cloud customers, it may also deter market entry or expansion by potential rivals.”

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In the cloud sector, competition among the Tech giant is fierce. Google, which is the third player, after Amazon and Microsoft, filed a complaint last September to the European Commission against alleged anti-competitive practices by Microsoft designed to lock customers into its cloud platform Azure.

At another event on Tuesday, Schwab advocated applying the DMA to cloud platform services saying that changing cloud providers “is extremely complicated” because the companies “have invested your data and have accommodated your system.”

However while cloud computing services are included among the “core platform services” monitored under the DMA, none have reached the designation thresholds.

The artificial intelligence market, in which the Trump administration has announced recently massive investments, and which has seen Deepseek, a new Chinese player, emerge in the last few days, is even less easy for legislators to define for antitrust enforcement purposes. Is it a service or a technology ?

“AI is a technology that underpins a wide range of digital applications and services – including some core platform services, such as search engines and social networks,” head of the tech lobby CCIA Europe, Daniel Friedlaender, told Euronews adding: “However, the underlying technology as such cannot be considered a core platform service under the DMA. AI is simply one of many enabling technologies behind a multitude of different services.”

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Schwab conceded: “Now cloud and AI are interdependent because all AI services are run by the cloud, but at the same time AI is not yet that much part of the gatekeeper services as cloud is already.” But he added that there’s an urgency to consider dealing with AI earlier in the same way as cloud services.

American Chatgpt, owned by Microsoft-backed Open AI, leads the market of artificial intelligence.  Microsoft’s Copilot  and Google’s Gemini are second and third.

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Video: Landslide in Sicily Leaves Homes Teetering on Edge

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Video: Landslide in Sicily Leaves Homes Teetering on Edge

new video loaded: Landslide in Sicily Leaves Homes Teetering on Edge

A town in Sicily was left teetering on the edge after a landslide, triggered by a violent storm which battered southern Italy last week. More than 1,500 people have been evacuated.

By Monika Cvorak and Meg Felling

January 28, 2026

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Spain legalizes up to 500,000 undocumented migrants, sparking backlash

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Spain legalizes up to 500,000 undocumented migrants, sparking backlash

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As the United States experiences negative net migration due to President Donald Trump policies, Spain is heading in the opposite direction, announcing plans to grant legal status for up to half a million illegal migrants.

Spain’s Socialist-led government approved a royal decree on Tuesday, allowing unauthorized immigrants who entered the country before the end of 2025 and who have lived there for at least five months and have no criminal record to obtain one-year residency and work permits with possible pathways to citizenship.

While many European governments have moved to tighten immigration policies — some encouraged by the Trump administration’s hardline approach — Spain has taken a different path. Prime Minister Pedro Sánchez and his ministers have repeatedly highlighted what they describe as the economic benefits of legal migration, particularly for the country’s aging workforce.

WHITE HOUSE ROADMAP SAYS EUROPE MAY BE ‘UNRECOGNIZABLE’ IN 20 YEARS AS MIGRATION RAISES DOUBTS ABOUT US ALLIES

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Spain’s Socialist Prime Minister Pedro Sánchez, Deputy Prime Minister and Minister of Finance María Jesús Montero and second Deputy Prime Minister and Labor Minister Yolanda Díaz at the Spanish Parliament in Madrid, Spain, March 14, 2024.  (AP Photo/Manu Fernandez)

Spain “will not look the other way,” Migration Minister Elma Saiz told reporters at a news conference, saying the government is “dignifying and recognizing people who are already in our country.”

The plan has sparked a fierce political battle, as conservatives and the populist Vox party have condemned what they describe as an amnesty that could fuel irregular migration.

Vox leader Santiago Abascal wrote on social media that the measure “harms all Spaniards,” arguing critics of his party are motivated by fear of Vox’s growing influence. 

“They are not worried about the consequences of Sánchez’s criminal policies,” Abascal wrote. “They are worried that Vox will gain more strength.”

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Alan Mendoza, executive director of the Henry Jackson Society, told Fox News Digital that “Spain’s decision appears calculated to increase the lure of Europe as a destination for illegal migrants in general, causing problems for all of its neighbors. 

“If Spain wishes to become a repository for such people, then I’m sure other European countries would appreciate signing agreements to transfer their own illegal migrants there. Absent this, we will all be paying the price for Spanish largesse.”

TRUMP SAYS HUNGARY’S BORDER STANCE KEEPS CRIME DOWN, SAYS EUROPE ‘FLOODING’ WITH MIGRANTS

A migrant walks by a makeshift settlement where migrants evicted from a former high school were camping outdoors in the middle of winter in Badalona, Spain, Dec. 26, 2025.  (Bruna Casas/Reuters)

Ricard Zapata-Barrero, a political science professor at Pompeu Fabra University in Barcelona, told Fox News Digital, “This is not a symbolic gesture. It is a direct challenge to the dominant European approach, which treats irregular migration primarily as a policing issue. Spain, instead, frames it as a governance problem, one that requires institutional capacity, legal pathways and administrative realism rather than more detention centers and externalized borders.”

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Migrants in Madrid, Spain, April 9, 2024.  (Francesco Militello Mirto/Nur Photo via Getty Images)

He said Spain’s immigration system had been showing signs of strain for years.

“When hundreds of thousands of people live in irregularity for years, the issue stops being an individual failure and becomes a structural one,” Zapata-Barrero said. “In this context, regularization is not leniency — it is governability.

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Migrants wait to disembark at the Port of Arguineguin after being rescued by a Spanish Coast Guard vessel on the island of Gran Canaria, Spain, Nov. 14, 2025. (Borja Suarez/Reuters)

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“In a Europe closing in on itself, Spain has taken a step that sets it apart — not because it is ‘softer,’ but because it is more pragmatic,” he added. “Whether this becomes a model or a counter-model inside the EU remains to be seen. But one thing is certain: Spain has launched a political experiment that Europe will watch closely.”

Reuters and the Associated Press contributed to this report. 

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Free trade or fair play? MEPs go head-to-head on Mercosur in The Ring

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Free trade or fair play? MEPs go head-to-head on Mercosur in The Ring

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What are the pros and cons of the EU-Mercosur trade deal? Why did the European Parliament send the text to the Court of Justice for clarification? Why did the EU sign an EU-India trade deal this week, and how will it impact you?

Some of the questions we pose on our latest episode of The Ring – Euronews’ weekly debating show, brought to you from the European Parliament studio in Brussels.

Irish MEP Ciaran Mullooly from Renew Europe and Swedish MEP Jörgen Warborn from the European People’s Party have a heated debate about their interpretation of the deal that was signed in Paraguay recently, after over two decades of negotiations.

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Supporters of the deal say it shows the EU is open for business and can act decisively in a world of turmoil and geopolitical competition. Jörgen Warborn argues new trade deals are essential for growth, diversification, and global influence.

Critics of the pact fear low standards in food safety and inadequate support for European farmers. Ciaran Mullooly worries about farmers being undermined, environmental standards and public trust being eroded.

This episode of The Ring is anchored by Méabh Mc Mahon, produced by Luis Albertos and Amaia Echevarria, and edited by Zacharia Vigneron.

Watch The Ring on Euronews TV or in the player above and send us your views by writing to thering@euronews.com

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