EU launches groundbreaking investigations into AWS and Microsoft Azure cloud services under DMA

The European Commission has initiated wide-ranging market investigations into Amazon Web Services and Microsoft Azure, aiming to assess their potential gatekeeper status and ensure competitive fairness in the EU’s digital ecosystem amidst rising industry tensions.

The European Commission has launched a comprehensive set of market investigations into cloud computing services, particularly focusing on Amazon Web Services (AWS) and Microsoft Azure, under the Digital Markets Act (DMA). Announced on November 18, 2025, these investigations address whether these major cloud providers should be designated as gatekeepers, a status that would impose significant regulatory obligations to ensure fair competition in the European Union’s digital markets. The probes are particularly notable as AWS and Azure have not met the DMA’s traditional quantitative thresholds, such as size, user numbers, or market position, that typically trigger gatekeeper designation. Instead, the Commission is employing a broader qualitative assessment to evaluate if these cloud platforms function as critical intermediaries between businesses and users within the EU digital ecosystem.

Three distinct investigations have been opened: two assess whether AWS and Azure should be treated as gatekeepers despite not meeting DMA thresholds, and a third scrutinises whether the current DMA framework suitably addresses competitive and fairness issues in the cloud computing sector. This third investigation will compile market feedback on interoperability obstacles, access to data by business users, tying and bundling practices, and potentially imbalanced contractual terms, all issues that may reinforce the market dominance of these providers and limit opportunities for rivals.

The Commission’s concerns reflect the central role that cloud computing now plays as crucial infrastructure for digital services and artificial intelligence development across Europe. Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, underscored the strategic importance of this sector, calling for cloud services to operate on fair, open, and competitive terms. Her counterpart, Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, highlighted cloud computing’s vital role in securing Europe’s technological future and safeguarding digital sovereignty.

Recent market analyses confirm that AWS and Microsoft Azure wield very strong positions relative to both business and consumer customers, potentially reinforced by technical barriers such as interoperability difficulties and high switching costs. If designated as gatekeepers, AWS and Microsoft would be required to ensure interoperability with competitors and refrain from self-preferencing, with non-compliance punishable by fines amounting to up to 10% of their global annual turnover.

The investigations represent a significant escalation of regulatory scrutiny in the EU, complemented by similar inquiries underway in other jurisdictions, including the UK, Denmark, and France. The UK’s Competition and Markets Authority, following an Ofcom referral, recommended designating AWS and Microsoft with Strategic Market Status for cloud activities, though no formal action has yet been taken.

These regulatory efforts also come amid a backdrop of broader industry tensions. Google, the third largest cloud provider globally, has lodged formal complaints against Microsoft, accusing it of antiscompetitive licensing practices that lock business customers into Azure and impose steep penalties for using rival services. Microsoft maintains that it has addressed prior concerns through agreements with European cloud providers, with some complaints having been withdrawn following changes to licensing terms.

The cloud investigations further coincide with calls from European industry groups urging rapid adoption of updated cybersecurity certification schemes for cloud services that notably favor major U.S. tech firms, including Amazon and Microsoft. Supporters argue such certification balances security with open market principles, though this also raises questions about balancing strategic digital sovereignty with industry realities.

Strategically, these investigations come as cloud infrastructure becomes increasingly integral to digital advertising and marketing operations, including the growing use of AI technologies hosted on cloud platforms. Integration trends among cloud and advertising tech services highlight the interconnected nature of these markets and the potential implications of gatekeeper designations for competitive access to essential infrastructure and data analytics capabilities. Compliance with DMA obligations, should designation occur, would require AWS and Microsoft to adjust operational practices within six months of the Commission’s decision.

The European Commission aims to conclude the gatekeeper designation investigations within 12 months and release a final broader assessment report on cloud market dynamics and DMA effectiveness within 18 months. This report has the potential to propose updates to the DMA regulatory framework in relation to cloud services, reflecting the evolving landscape and ensuring the legislation remains fit for purpose in a rapidly changing sector.

In conclusion, the EU’s push to scrutinise AWS and Microsoft Azure under the DMA signals a decisive move to ensure the cloud computing sector fosters innovation and competition while avoiding the entrenchment of dominant gatekeeper positions that could restrict market fairness and technological sovereignty in Europe.

📌 Reference Map:

• ^[1] (PPC Land) – Paragraphs 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14
• ^[2] (Digital Markets Act official release) – Paragraphs 1, 3, 12
• ^[3] (Reuters) – Paragraphs 2, 5, 7, 11
• ^[4] (AP News) – Paragraphs 1, 6, 10
• ^[5] (Reuters) – Paragraph 8
• ^[6] (AP News) – Paragraph 9

Source: Noah Wire Services