European Union antitrust regulators have proposed designating cloud businesses operated by Amazon and Microsoft as “gatekeepers” under the Digital Markets Act (DMA), a move that would place the world's two largest cloud providers under stricter competition rules.
The proposed designation would apply to Amazon Web Services (AWS) and Microsoft Azure, requiring both companies to comply with obligations designed to prevent anti-competitive behavior. These measures include restrictions on self-preferencing, improved interoperability between services, and easier data portability for customers.
The move marks a significant expansion of the DMA, which has previously focused on areas such as search engines, social media platforms, and app stores. Bringing cloud infrastructure under the rules reflects the growing importance of cloud computing as a foundation for artificial intelligence and digital services across Europe.
According to EU officials, more than half of European businesses now rely on cloud services, while investments in public cloud infrastructure continue to rise rapidly.
Henna Virkkunen, the European Union’s technology chief, said cloud services have become essential to Europe’s economy and increasingly important for AI development. She added that fair and competitive cloud markets are necessary to strengthen innovation, trust, and Europe’s technological sovereignty.
The preliminary findings come after a seven-month investigation by EU regulators.
Amazon criticized the proposal, arguing that European customers already have access to numerous cloud providers. The company said additional regulations could discourage investment and innovation in Europe, noting that existing rules under the Data Act already govern cloud services.
Microsoft also expressed concerns, arguing that regulators are overlooking the growing presence of rival cloud providers, particularly Google Cloud and its AI offerings.
The European Commission said AWS and Azure were singled out because of their substantial revenues, extensive customer bases, large investments, strong market positions, and the high costs customers face when switching providers. Regulators also highlighted the importance of their AI services and partnerships in influencing cloud purchasing decisions.
Amazon and Microsoft will now have an opportunity to respond to the Commission’s findings before the EU reaches a final decision in the coming months.
If approved, the designation would represent one of the most significant expansions of the Digital Markets Act and could reshape competition in Europe’s cloud and artificial intelligence sectors.
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