EU Moves To Classify Amazon & Microsoft Cloud Units As Digital Gatekeepers

The European Commission has issued preliminary findings proposing to designate Amazon Web Services (AWS) and Microsoft Azure as “gatekeepers” under the Digital Markets Act (DMA), a move that would subject the cloud computing businesses to new regulatory obligations.

The findings follow a seven-month investigation into the two companies’ cloud services. If confirmed, AWS and Microsoft Azure would be required to comply with rules covering interoperability, data portability, and restrictions on self-preferencing. The Commission said cloud services have become central to Europe’s digital economy and artificial intelligence (AI) adoption, with more than half of EU businesses relying on them. It cited the companies’ market position, operational scale, customer base, switching costs, and AI offerings as factors supporting the proposed designation.

Amazon said the assessment overlooks the range of cloud providers available in Europe and could affect investment and innovation. Microsoft said the review does not adequately consider the position of Google Cloud.

Both companies can respond before the Commission issues its final decision in the coming months.