Melike Pala
25 June 2026•Update: 25 June 2026
The European Commission on Thursday took a step toward placing Amazon's and Microsoft's cloud computing businesses under tougher European Union competition rules, arguing that the companies have become critical gateways for businesses across the bloc.
The Commission said it had informed Amazon and Microsoft of its preliminary view that Amazon Web Services (AWS) and Microsoft Azure should be designated as gatekeepers under the Digital Markets Act (DMA), legislation designed to curb the market power of the world's largest technology companies.
If confirmed, the designation would subject the companies' cloud businesses to new obligations aimed at ensuring fair competition and preventing practices that disadvantage rivals.
"Cloud services have become a cornerstone of Europe's economy – and a prerequisite for AI," EU technology chief Henna Virkkunen said in a statement. "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.”
The Commission said AWS and Azure are the two largest cloud service providers in the EU and serve as essential gateways connecting businesses with their customers, despite falling below the law's usual size thresholds for designation.
Brussels pointed to the companies' significant revenues, extensive customer bases and technological advantages, arguing that their scale and investments have outpaced rivals in the European cloud market.
According to the preliminary findings, Amazon and Microsoft appear to retain much of the surging demand for AI-related cloud services within their own ecosystems through their expanding portfolios of AI tools and partnerships.
The EU executive further said both companies hold entrenched and durable positions in the European cloud sector, with AWS and Azure maintaining market leadership for years.
The EU Commission launched investigations into AWS and Azure in November 2025 to determine whether the companies should be designated as gatekeepers.
Amazon and Microsoft will now have the opportunity to respond before the Commission makes a final decision. If the designation is confirmed, the companies will have six months to comply with the Digital Markets Act.
The move forms part of a broader effort by Brussels to increase scrutiny of the cloud computing market, which has become a critical infrastructure layer for industries ranging from manufacturing and retail to healthcare and finance, as well as for the development and deployment of AI technologies.
