The European Union (EU) is broadening its clampdown on Big Tech, extending the reach of its Digital Markets Act to cloud computing and artificial intelligence infrastructure for the first time.
On Thursday, the European Commission said it intends to designate Microsoft Azure and Amazon Web Services as gatekeepers under the DMA, placing the world’s two largest cloud providers under stricter competition rules.
The DMA sets obligations for dominant digital platforms to ensure fairer markets and prevent self-preferencing. Until now, it has applied mainly to consumer-facing services like app stores, search engines, and messaging. This marks the EU’s first use of the law against enterprise cloud platforms.
In its statement, the Commission said AWS and Azure have become “essential services that connect businesses to their customers,” even though they fall outside some of the DMA’s traditional user-count thresholds. Regulators argued the pair are significantly larger than rivals, making it costly and complex for customers to migrate to alternatives.
Brussels highlighted how cloud buying is increasingly tied to AI services and strategic partnerships. As demand for AI-powered workloads surges, AWS and Azure are capturing much of the growth inside their own ecosystems, leaving smaller competitors struggling for market share.
Tech Commissioner Henna Virkkunen said cloud services “have become a cornerstone of Europe’s economy, and a prerequisite for AI.”
She added that because these platforms are central to Europe’s digital future, they must operate in “fair, open, and competitive markets that build trust and help ensure Europe’s technological independence.”
Microsoft and Amazon Push Back on Uneven Treatment
Both companies criticized the preliminary decision, focusing on its impact on competition. The ruling covers AWS and Azure but excludes Google Cloud for now, creating what the firms call an uneven playing field.
If confirmed, Microsoft and Amazon would face new obligations. They must avoid favoring their own products, improve interoperability with rivals, and simplify data portability for customers. Google, by contrast, would not face those costs immediately and could direct investment toward expanding its cloud business and integrating Gemini AI.
A Microsoft spokesperson told Julisha that Europe’s cloud market is competitive, dynamic, and a major engine of economic expansion, warning that omitting Google Cloud and Gemini’s growing role could distort competition and negatively impact the market.
An AWS spokesperson said the decision fails to account for the range of cloud solutions available to European consumers and could deter investment. The company also noted that cloud services are already regulated under the EU’s Data Act and argued that overlapping DMA rules would “restrict access to cutting-edge technology and reduce Europe’s competitiveness.”
Google’s Temporary Edge May Be Limited
Some analysts caution that framing Google Cloud’s exclusion as unfair misses the bigger picture. AWS and Azure still command the bulk of enterprise spending, and switching providers remains rare due to technical and contractual lock-in.
Google could be added later, and the current designation is preliminary. Moreover, the EU’s Data Act, which takes effect in 2027, will make it easier for customers to move between providers by mandating data portability and interoperability standards.
Combined with the bloc’s push for digital sovereignty and support for European cloud firms, any near-term advantage for Google is likely to be modest and short-lived.
Next Steps: Six Months to Comply if Confirmed
The Commission’s move is not final. Microsoft and Amazon can file written responses and challenge the findings before a definitive ruling expected in November. If the gatekeeper status is confirmed, both companies will have six months to bring their cloud operations into full DMA compliance.
The decision signals Brussels’ intent to regulate not just consumer apps but the infrastructure layer powering AI, data, and enterprise software. It also underscores the EU’s strategy to reduce dependence on non-European technology providers as AI becomes central to economic growth.
