EU moves to bring Amazon, Microsoft cloud under tougher rules
The European Commission has taken a preliminary step to designate Amazon Web Services and Microsoft Azure as “gatekeepers” under the Digital Markets Act, citing their dominant positions in the EU cloud market despite not meeting standard thresholds. EU tech chief Henna Virkkunen said cloud services “must operate in fair, open and competitive markets.”
The European Commission on Thursday moved to place Amazon's and Microsoft's cloud computing businesses under stricter EU competition rules, arguing that the companies have become critical gateways for businesses across the bloc. The Commission informed both firms of its preliminary view that Amazon Web Services (AWS) and Microsoft Azure should be designated as gatekeepers under the Digital Markets Act (DMA). If confirmed, the designation would impose new obligations aimed at ensuring fair competition and preventing practices that disadvantage rivals.
Why the DMA applies
The Commission noted that AWS and Azure are the two largest cloud providers in the EU, serving as essential gateways connecting businesses with their customers, despite falling below the law’s usual size thresholds. Brussels pointed to the companies' significant revenues, extensive customer bases, and technological advantages, arguing that their scale and investments have outpaced rivals. The EU executive also highlighted that both companies appear to retain much of the surging demand for AI-related cloud services within their own ecosystems. “Cloud services have become a cornerstone of Europe's economy – and a prerequisite for AI,” said EU tech chief Henna Virkkunen.
Next steps and context
The Commission launched investigations into AWS and Azure in November 2025 to determine whether the companies should be designated as gatekeepers. Amazon and Microsoft will now have the opportunity to respond before a final decision is made. If the designation is confirmed, the companies will have six months to comply with the DMA. The move forms part of a broader effort by Brussels to increase scrutiny of the cloud computing market, which has become a critical infrastructure layer for industries from manufacturing to healthcare, as well as for AI development.
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