EU targets AWS and Azure as cloud gatekeepers under DMA

The European Commission has taken a preliminary step to classify Amazon Web Services (AWS) and Microsoft Azure as gatekeepers under the Digital Markets Act (DMA), a move that would subject the cloud providers to stricter regulatory obligations. The designation, announced on 25 June 2026, targets the two largest cloud computing services in the EU, citing their role as critical intermediaries between businesses and customers in the bloc. The Commission argues that both AWS and Azure benefit from entrenched user bases, high switching costs, and extensive ecosystems, which could limit competition in the European cloud market. Notably, the decision comes despite neither provider meeting the DMA’s quantitative thresholds for gatekeeper status, such as specific user numbers, underscoring the Commission’s focus on market influence over rigid metrics.

If finalized, the designation would require AWS and Azure to comply with DMA obligations within six months, including measures to enhance interoperability, facilitate data access, and prevent anti-competitive practices. Non-compliance could result in fines of up to 10% of the companies’ worldwide turnover. The Commission’s preliminary findings are not final, and both Amazon and Microsoft have been given the opportunity to respond before a final decision is made.

Industry reactions and counterarguments

Microsoft and Amazon have both contested the Commission’s preliminary position. A Microsoft spokesperson described the cloud sector in Europe as "innovative, highly competitive, and an accelerator for growth across the economy," while expressing concerns that the decision could "tilt the market in a harmful way" by overlooking the growing influence of Google Cloud and its AI platform, Gemini. Similarly, AWS argued that the Commission’s findings "disregard the breadth of cloud services available to European customers" and risk deterring investment and innovation in the region. The company pointed to existing EU cloud regulations, such as the Data Act, as sufficient oversight, warning that additional DMA requirements could undermine European competitiveness and access to cutting-edge technology.

Reactions from other stakeholders have been mixed. The Open Cloud Coalition, a group representing cloud providers and users, welcomed the Commission’s preliminary findings. A spokesperson for the coalition noted that the decision aligns with long-standing concerns about customer lock-in, particularly in the context of enterprise AI, and called for swift implementation of remedies to ensure market choice and growth. Microsoft has previously characterized the Open Cloud Coalition as a lobbying group for Google, highlighting the broader industry tensions at play.

Implications for the European cloud market

The potential gatekeeper designation of AWS and Azure reflects the EU’s broader push to regulate digital markets and ensure fair competition. Henna Virkkunen, the European Commission’s Executive Vice-President for Tech Sovereignty, Security, and Democracy, emphasized the central role of cloud services in Europe’s economy and digital future. "Cloud services have become a cornerstone of Europe’s economy – and a prerequisite for AI – with over half of EU businesses now relying on them," Virkkunen stated. "Given their central role, these services must operate in fair, open, and competitive markets that foster trust and secure Europe’s tech sovereignty."

For cloud customers in Europe, the designation could lead to greater flexibility in switching providers and improved access to data, potentially reducing vendor lock-in. However, the regulatory burden could also introduce operational complexities, particularly for businesses heavily integrated with AWS or Azure ecosystems. The outcome of the Commission’s review process will be closely watched by industry players, as it could set a precedent for how the DMA is applied to cloud services and other digital infrastructure providers in the future.

What to watch

The next steps in the process will be critical. Amazon and Microsoft have until the Commission’s final decision to present their arguments against the gatekeeper designation. If the preliminary findings are upheld, the companies will have six months to comply with the DMA’s requirements. Industry observers will be monitoring how the providers adapt their services to meet interoperability and data access obligations, as well as the potential impact on pricing, innovation, and market dynamics in the European cloud sector. The decision could also influence regulatory approaches in other regions, particularly as governments grapple with the growing dominance of hyperscale cloud providers in digital infrastructure.