EU designates Amazon Web Services and Microsoft Azure as gatekeepers under Digital Markets Act

The European Commission has taken a decisive step to bring Amazon Web Services (AWS) and Microsoft Azure under stricter regulatory oversight, designating the two cloud giants as "gatekeepers" under the Digital Markets Act (DMA) despite not meeting the standard thresholds. The preliminary move, announced on Thursday, marks a significant expansion of the EU’s crackdown on dominant tech platforms, with EU tech chief Henna Virkkunen emphasizing that cloud services must operate in "fair, open and competitive markets."

The decision follows the Commission’s preliminary findings published on Wednesday, which identified AWS and Microsoft Azure as gatekeepers due to their entrenched positions in the EU cloud market. Virkkunen stated that the designation aims to prevent anti-competitive practices and ensure smaller providers can compete on equal footing. "Cloud services are the backbone of Europe’s digital economy," she said. "We cannot allow a handful of players to dictate terms that stifle innovation and choice."

The move comes amid growing concerns over the dominance of U.S. tech giants in Europe’s cloud infrastructure, where AWS and Microsoft Azure collectively control over 60% of the market. Critics argue that their market power allows them to impose restrictive licensing terms, high fees, and data sovereignty risks on European businesses and public institutions. The DMA, which entered into force in 2023, empowers the Commission to impose strict obligations on gatekeepers, including prohibiting self-preferencing, restricting data hoarding, and ensuring interoperability with rival services.

The designation is preliminary, and AWS and Microsoft Azure will have the opportunity to respond before a final decision is made. If confirmed, the companies could face hefty fines of up to 10% of their global annual revenue for non-compliance. The Commission’s action aligns with broader EU efforts to assert digital sovereignty, including recent initiatives to tighten oversight of green bonds and environmental permitting.

In a separate development, the European Securities and Markets Authority (ESMA) published an official register of firms authorized to review European Green Bonds, aiming to enhance transparency in sustainable finance. Meanwhile, the European Banking Authority (EBA) has called on banks to improve data quality reporting, citing widespread discrepancies among financial institutions. These measures underscore the EU’s intensified regulatory scrutiny across multiple sectors, signaling a new era of accountability for both tech and financial industries.