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European Union regulators have moved toward expanding digital competition rules by targeting EU cloud services. The latest preliminary findings suggest Amazon and Microsoft could receive “gatekeeper” status under the Digital Markets Act (DMA).
The decision would apply to Amazon Web Services and Microsoft Azure, the world’s two largest cloud providers. If confirmed, the designation would introduce stricter obligations designed to reduce market dominance and increase competition.
Under the Digital Markets Act, gatekeepers must follow specific operational requirements. These include restrictions on self-preferencing and obligations to support interoperability and data portability. Regulators aim to make it easier for customers to switch providers and access compatible services.
Until now, DMA enforcement mainly focused on major digital platforms. Search engines, social media networks, and app stores were key targets. Extending the law to EU cloud services would broaden its reach into digital infrastructure.
The European Commission completed a seven-month investigation before announcing its preliminary position. Officials emphasized the growing role cloud infrastructure plays across European industries.
EU technology chief Henna Virkkunen highlighted the sector’s importance. She stated that cloud services now support a large share of business activity across Europe. More than half of businesses in the European Union depend on cloud technology, while public investment in cloud infrastructure continues to grow.
Virkkunen also linked cloud adoption to artificial intelligence development. According to the Commission, competitive and open markets remain necessary to strengthen trust and support Europe’s digital goals.
The regulator identified several reasons for focusing on Amazon Web Services and Microsoft Azure. Officials cited their large revenues, extensive operational capabilities, strong investment levels, and established customer networks.
The Commission also pointed to customer lock-in effects and high switching costs. These conditions may reduce competition and limit choices for organizations using cloud platforms.
Another factor involved artificial intelligence tools and strategic partnerships connected to cloud offerings. Regulators said these elements increasingly influence purchasing decisions across the market.
Amazon criticized the preliminary assessment. The company argued that European customers already have access to many cloud options. Amazon also warned that additional regulation could discourage investment and reduce innovation.
Amazon further stated that the European Union already regulates cloud markets through the Data Act. According to the company, overlapping rules may weaken competitiveness and restrict access to advanced technologies.
Microsoft raised different concerns. The company argued that regulators should also consider the expanding position of Google Cloud and Gemini in the market.
The investigation has not reached its final stage. Amazon and Microsoft may now respond to the Commission’s findings before a final decision arrives in the coming months.
If adopted, the measures could reshape EU cloud services and redefine competition standards for digital infrastructure and artificial intelligence across Europe.
