Catenaa, Wednesday, December 03, 2025-The European Commission has launched investigations to determine whether Amazon Web Services and Microsoft Azure qualify as gatekeepers under the Digital Markets Act, potentially subjecting the cloud providers to stricter competition rules.
The probe will assess whether the hyperscalers meet thresholds that trigger DMA obligations, including ensuring customer portability, enabling interoperability with rival cloud platforms, and preventing practices that limit competition.
A separate inquiry will review whether the DMA itself is effective at regulating cloud markets.
The Commission stressed the strategic importance of cloud computing for Europe’s competitiveness, innovation, and AI development.
Officials said the goal is to maintain a fair, open, and competitive environment that safeguards tech sovereignty.
Recent precedent from the UK’s Competition and Markets Authority found that AWS and Azure wield significant unilateral market power, limiting competition and making customer switching more difficult.
Globally, the two firms dominate cloud infrastructure, holding roughly half of the market alongside Google Cloud, with AWS accounting for 29% and Microsoft 20% of spending in Q3 2025.
If designated as gatekeepers, AWS and Azure would face additional regulatory obligations, although both companies already comply with similar rules for other business units, such as Amazon Marketplace, Amazon Advertising, Windows OS, and LinkedIn.
Analysts expect the designation to be largely procedural given the firms’ scale, with compliance likely absorbed through existing resources.
The EU investigation signals heightened scrutiny of dominant cloud services and underscores the Commission’s push to enforce competition and maintain Europe’s technological sovereignty in a rapidly evolving market.
