Full Breakdown
EU Moves to Designate Amazon and Microsoft as Cloud Gatekeepers Under the DMA
6/26/2026, 12:10:46 PM
Expanding the Digital Markets Act to Cloud Infrastructure
On 25 June 2026 the European Commission announced a preliminary view that Amazon Web Services (AWS) and Microsoft Azure should be designated as “gatekeepers” under the Digital Markets Act (DMA). The designation would subject the two largest EU cloud providers—accounting for roughly 60 % of the European market—to DMA obligations, including bans on self-preferencing and requirements for interoperability and data portability. Companies have six months to comply if the final decision confirms the gatekeeper status, after which fines of up to 10 % of worldwide turnover could be imposed for non-compliance.
Background: From Consumer Platforms to Enterprise Clouds
The DMA, adopted in 2023, originally targeted consumer-facing core platform services such as search engines, social media, app stores and online advertising. By extending the regime to cloud infrastructure, Brussels treats the provision of computing, storage and AI tools as a “gateway” between businesses and their customers, reflecting the sector’s growing strategic importance for AI development, public-sector digitisation and industrial software.
Key Players
- European Commission – Executive Vice-President Henna Virkkunen (tech sovereignty) and Commissioner Teresa Ribera (competition) lead the initiative.
- Amazon Web Services – Represented by an AWS spokesperson.
- Microsoft Azure – Represented by a Microsoft spokesperson.
- Open Cloud Coalition – Industry group of cloud-service providers.
- Open Markets Institute (OMI) Europe – Policy think-tank headed by Director Max von Thun.
Market Share and Economic Weight
The Commission’s analysis notes that over 50 % of EU businesses rely on cloud services, with AWS and Azure together providing the majority of capacity. The firms’ “significant turnover, operational capacity and investments” and the “high switching costs” faced by customers underpin the gatekeeper assessment.
Official EU Position and Rationale
EU officials argue that cloud services are a “cornerstone of Europe’s economy” and a prerequisite for AI, requiring “fair, open and competitive markets” to safeguard tech sovereignty. The Commission stresses that the move is not a US-Europe rivalry but a step to reduce structural dependencies on non-European technology in critical sectors.
Company Responses
Amazon contends that the DMA adds “another heavy layer of overlapping regulation” to an already regulated sector, risking “European competitiveness and access to cutting-edge information technology.” Microsoft echoes concerns about market distortion, warning that excluding Google Cloud could “tilt the market in a harmful way.” Both firms will submit written observations before the final decision.
Criticism and Advocacy
OMI Europe welcomes the preliminary finding, calling it a “major step” for European competitiveness, but warns that excluding Google Cloud “risks giving the latter an unfair advantage.” The Open Cloud Coalition also supports the gatekeeper designation, noting that “existing customer lock-in may fuel enterprise AI.”
Conflicting Findings and Gaps
The DMA’s quantitative thresholds (user numbers, turnover) are not met by AWS and Azure, yet the Commission bases its view on qualitative factors such as lock-in effects. Google Cloud, while a major player, is not currently deemed dominant enough for gatekeeper status, creating a discrepancy between market share and regulatory treatment.
Verbatim Quotes
- “Cloud services have become a cornerstone of Europe’s economy – and a prerequisite for AI – with over half of EU businesses now relying on them, combined with record investment in public cloud infrastructure.” — Henna Virkkunen, EU tech chief
- “The EU already has comprehensive cloud regulation through the Data Act, and adding another heavy layer of overlapping regulation under the DMA undermines European competitiveness and access to cutting-edge information technology,” — AWS spokesperson
- “We remain concerned that ignoring the growing power of Google Cloud and Gemini will tilt the market in a harmful way.” — Microsoft spokesperson
- “A spokesperson for the Open Cloud Coalition told The Register: "Our members welcome the Commission's preliminary finding naming Microsoft and AWS as cloud gatekeepers.” — Open Cloud Coalition spokesperson
- “Today's landmark decision is a major step in the right direction for Europe’s competitiveness, resilience and sovereignty,” — Max von Thun, Director, OMI Europe
- “This is not about European players versus US players,” — Ricardo Cardoso, Commission competition-policy spokesperson
Implications for Europe’s Digital Future
Designating AWS and Azure as gatekeepers would extend EU competition oversight to a core layer of the digital economy, potentially reshaping procurement, investment and AI development across sectors. The move also signals a broader EU strategy to limit reliance on non-European technology while balancing regulatory burdens that could affect cloud-provider investment decisions.
What’s Next
Amazon and Microsoft can submit formal responses within the next weeks. If the Commission confirms the gatekeeper status, the DMA obligations will apply after a six-month compliance period, and the Commission may levy fines for breaches. Parallel initiatives—including the Data Act and the proposed Cloud and AI Development Act—will continue to shape the regulatory landscape for European cloud services.
