EU Moves to Designate AWS and Azure as Digital Markets Act Gatekeepers
European Union regulators are preparing to designate Amazon Web Services and Microsoft Azure as gatekeepers under the Digital Markets Act, potentially forcing the two major cloud providers to introduce greater interoperability and reduce customer lock-in.
The European Union is moving closer to bringing Amazon Web Services (AWS) and Microsoft Azure under the Digital Markets Act (DMA), marking a significant expansion of the bloc’s regulatory scrutiny of the cloud-computing industry. According to people familiar with the process, European regulators are preparing a decision that could be issued in November 2026, although the timetable remains subject to change. The European Commission has confirmed that its assessment is still ongoing and that no final decision has yet been made.
The move follows a market investigation launched by the European Commission in November 2025 to determine whether AWS and Azure should be treated as important gateways under the DMA. In June 2026, the Commission announced preliminary findings that both cloud services should be designated despite not meeting the DMA’s normal quantitative thresholds. Regulators argued that AWS and Azure have exceptionally strong positions in the European cloud market, significant investments and large, established business customer bases.
If the designation becomes final, AWS and Azure would face obligations intended to make the cloud market more competitive. These include requirements relating to interoperability, data portability and customer switching, as well as restrictions designed to prevent the companies from favouring their own services over competitors. The measures are intended to reduce the difficulties businesses can face when moving applications and data from one cloud provider to another.
The potential designation is particularly important because cloud infrastructure has become central to European businesses, government services and the development of artificial intelligence. The European Commission said more than half of EU businesses now rely on cloud computing, making competition and access to these services increasingly important to Europe’s digital economy. Regulators have also expressed concerns about dependence on a small number of major cloud providers and the potential effects of high switching costs and vendor lock-in.
Amazon and Microsoft have both been given the opportunity to respond to the Commission’s preliminary position before any final decision is taken. If AWS and Azure are ultimately designated, the companies would have six months to comply with the applicable DMA obligations. Failure to comply with DMA requirements can expose designated gatekeepers to substantial penalties, including fines of up to 10% of worldwide annual turnover, with higher penalties possible for repeat violations.
