European Commission Eyes AWS and Azure for DMA Gatekeeper Label

Officials in Brussels have formed an initial view that Amazon Web Services and Microsoft Azure merit designation as gatekeepers under the Digital Markets Act.

The Commission identifies AWS and Azure as gatekeepers. The two are reportedly "the largest and second largest cloud computing services in the EU respectively" and function as a gateway between businesses and their end customers across the bloc.

Both maintain extensive, well-established customer groups. They also appear to gain from lock-in effects together with elevated switching costs plus broad surrounding ecosystems.

Designation would impose new obligations and potential fines. Gatekeeper status would trigger rules on interoperability, data access and competition. Failure to comply could bring penalties reaching 10 percent of global turnover.

Although the providers fell short of the DMA's numerical criteria for automatic inclusion, such as user counts, their dominant positions have drawn regulatory attention.

Companies push back against the preliminary findings. A Microsoft spokesperson told The Register the firm "continue[s] to engage constructively with the Commission." The spokesperson described the European cloud sector as "innovative, highly competitive and an accelerator for growth across the economy."

Microsoft voiced worry that overlooking the rising strength of Google Cloud and Gemini could distort the market. An AWS spokesperson told The Register the Commission's early conclusions "disregard the breadth of cloud services available to European customers" and could discourage investment and innovation. The company said it encounters robust competition while customers enjoy wider selection, reduced prices and increased flexibility.

Existing rules and calls for remedies surface in responses. AWS maintained that the bloc possesses sufficient cloud oversight via the Data Act. It warned that an extra overlapping DMA layer would harm competitiveness and access to advanced technology. A spokesperson for the open-cloud advocacy group welcomed the initial determination naming the two providers. The group highlighted the noted risk that entrenched customer lock-in could drive enterprise AI, echoing prior worries about Microsoft's licensing approach. It urged swift implementation of remedies to promote options and expansion for European cloud users. In 2024 Microsoft labeled the group a lobbying organization for Google.

EU official highlights cloud's role in economy and AI. Henna Virkkunen, executive vice-president for tech sovereignty, security and democracy, declared cloud offerings "have become a cornerstone of Europe’s economy – and a prerequisite for AI." She pointed to more than half of EU companies depending on them alongside record spending on public cloud facilities. Virkkunen added that these services must function inside "fair, open and competitive markets that foster trust and secure Europe's tech sovereignty." The assessment stays preliminary, leaving room for Amazon and Microsoft to reply ahead of any final ruling.