EU preliminarily – The European Commission has taken a preliminary step toward designating Microsoft’s Azure and Amazon’s AWS as “gatekeepers” under the EU’s Digital Markets Act, a move that could force interoperability and data-access obligations backed by potential fines of up
By the time the European Commission’s preliminary position landed, the message was already clear: Microsoft’s Azure and Amazon Web Services sit close enough to the center of EU cloud computing that regulators are ready to treat them like gatekeepers.
The Commission has reached a preliminary view that Azure and AWS should be designated under the Digital Markets Act. That designation would trigger requirements imposed on the cloud giants, with potential fines of up to 10% of worldwide turnover if the obligations are not met.
In the Commission’s framing, AWS and Azure are a gateway between businesses and their customers in the bloc. The Commission describes them as “the largest and second largest cloud computing services in the EU respectively. ” and says both have vast. entrenched user bases. It also points to what it characterizes as lock-in effects and high switching costs, alongside a broad ecosystem.
The Commission’s position is still preliminary. and it matters that both companies did not meet the DMA’s quantitative thresholds for designation—for example. user-number metrics. Still. the Commission says their market position has drawn scrutiny. and if the gatekeeper designations hold. the rules would be applied to them.
The stakes are immediate for cloud customers and competitors because the gatekeeper framework would bring obligations related to interoperability, access to data, and competition.
Microsoft and Amazon have an opportunity to respond before anything becomes final. A Microsoft spokesperson said the company “continue[s] to engage constructively with the Commission.” The spokesperson added: “The cloud sector in Europe is innovative. highly competitive and an accelerator for growth across the economy.”.
The spokesperson also raised a different concern: “We remain concerned that ignoring the growing power of Google Cloud and Gemini will tilt the market in a harmful way.”
AWS disputed the preliminary position as well. In a statement. an AWS spokesperson said the Commission’s preliminary findings “disregard the breadth of cloud services available to European customers” and could “risk deterring European investment and innovation.” The spokesperson argued that “AWS faces healthy competition and customers across Europe have more choice. lower prices. and greater flexibility than ever before.”.
AWS also pointed to what it sees as overlapping regulation: “The EU already has comprehensive cloud regulation through the Data Act. and adding another heavy layer of overlapping regulation under the DMA undermines European competitiveness and access to cutting-edge information technology.” The statement concluded that AWS will “continue to engage with the Commission to reach the right outcome for customers and Europe’s digital future.”.
Not all responses carried the same alarm. The Open Cloud Coalition welcomed the Commission’s preliminary finding naming Microsoft and AWS as cloud gatekeepers. Its spokesperson highlighted the Commission’s view that existing customer lock-in may fuel enterprise AI. describing the concern as something that mirrors longstanding worries about Microsoft’s licensing and ecosystem practices. The coalition’s spokesperson said “moving quickly to deliver remedies is now a priority to ensure choice and growth for European cloud customers.”.
Henna Virkkunen, executive vice-president for tech sovereignty, security and democracy, put the issue in broader economic terms. She said: “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. combined with record investment in public cloud infrastructure.” Virkkunen added: “Given their central role in Europe’s digital future. these services must operate in fair. open and competitive markets that foster trust and secure Europe’s tech sovereignty.”.
Six months is the timeline regulators have in mind if the preliminary findings are confirmed. If Microsoft and Amazon are designated as gatekeepers for their cloud services—something the companies already hold for other services—the companies will have six months to ensure compliance with the DMA’s obligations.
European Commission Digital Markets Act DMA gatekeeper designation Microsoft Azure Amazon AWS cloud regulation interoperability access to data enterprise AI lock-in effects switching costs