EU Investigates AWS And Azure For Gatekeeper

The European Commission (EC) has opened formal investigations into Amazon Web Services (AWS) and Microsoft Azure to determine whether the two hyperscalers should be designated as “gatekeepers” under the Digital Markets Act (DMA)-a move that could significantly reshape Europe’s cloud ecosystem. 

The DMA, introduced in 2022, imposes strict obligations on companies deemed to hold structural power over digital markets. While AWS and Azure do not automatically meet the quantitative thresholds for gatekeeper status, Brussels is concerned that their dominant role in cloud infrastructure may give them outsize control over access, interoperability, competition, and data flows. 

If classified as gatekeepers, Amazon and Microsoft would be required to: 

• Allow third-party interoperability with their cloud services 

• Provide users access to their own platform-generated data 

• Refrain from self-preferencing their services in rankings or integrations 

Failure to comply could lead to fines of up to 10% of global turnover. 

A parallel EC investigation will assess whether the DMA is sufficient to address structural issues in the cloud market. This includes barriers to entry, unfair contractual terms, and practices that may lock customers into proprietary ecosystems. The inquiry reflects mounting policy pressure. A recent UK cloud market review found that AWS and Azure hold “significant unilateral market power”, citing high switching costs and competitive constraints. In the US, the Federal Trade Commission is also examining cloud competition. 

EC Executive Vice President Henna Virkkunen emphasized that cloud services are critical to Europe’s digital future-including AI development-and must operate in a “fair, open, and competitive environment.” 

Both AWS and Microsoft pushed back on the probe. Microsoft argued the European cloud sector remains “highly competitive,”. Meanwhile, AWS warned that gatekeeper designation could stifle innovation and increase costs for European businesses. 

The investigation highlights growing geopolitical and regulatory scrutiny as cloud infrastructure becomes foundational to AI, digital sovereignty, and economic resilience across Europe. 

Source: 

https://www.theregister.com/2025/11/18/amazon_microsoft_cloud_dma/