The European Commission has preliminarily concluded that Amazon Web Services and Microsoft Azure should fall under the European Union’s digital dominance rules, Politico reported. The decision would extend the Digital Markets Act into cloud infrastructure for the first time, targeting Europe’s €220 billion cloud computing market. Both companies have until December to argue against being designated as gatekeepers.
A DMA designation would require providers to make it easier and cheaper for customers to switch to rival providers or use multiple cloud services. The Commission is also reviewing whether the current DMA framework fits cloud infrastructure, with final recommendations due by May 2027. The regulatory push adds tension with the Trump administration, which has framed EU tech regulation as an attack on U.S. companies.
Both tech giants rejected the findings. An Amazon Web Services spokesperson stated, “The Commission’s preliminary findings disregard the breadth of cloud services available to European customers and risk deterring European investment and innovation.” Amazon previously argued the DMA was simply not designed for cloud infrastructure.
Microsoft raised concerns about the omission of Google Cloud from the list. A Microsoft spokesperson stated, “We remain concerned that ignoring the growing power of Google Cloud and Gemini will tilt the market in a harmful way.” Defending the expansion, Executive Vice-President Teresa Ribera stated that ensuring a competitive market is essential as these services grow in importance.
