The European Commission said on Thursday that it takes the preliminary view that Amazon Web Services and Microsoft Azure should be designated as “gatekeepers” under the Digital Markets Act, a move that would subject the two cloud giants to the bloc’s toughest tech rules even though neither meets the DMA’s standard market-share thresholds.

In a series of preliminary findings published on 25 June 2026, the Commission argued that AWS and Azure occupy entrenched positions in the EU cloud market that justify designation under Article 3(5) of the DMA, which allows regulators to intervene when a company’s “extent of its activities” creates an “immediate threat” to contestability. EU tech chief Henna Virkkunen said the decision was designed to ensure cloud services operate in “fair, open and competitive markets.”

Neither AWS nor Azure crosses the DMA’s quantitative gatekeeper thresholds—annual EU turnover above €7.5 billion or a market value above €75 billion—but the Commission’s preliminary position extends the reach of the regulation into cloud infrastructure for the first time. The decision now enters a four-week consultation period before a final designation, expected later this year.

The move risks further straining transatlantic relations, with the Trump administration already criticising the DMA as an unfair trade barrier. A senior EU official acknowledged that Washington had “railed against the rules,” but stressed that Brussels was acting within its own legal framework.

Analysts said the preliminary designation could force AWS and Azure to open their platforms to rivals, restrict self-preferencing, and allow business users to switch providers more easily. “This is the first time the DMA has been applied to cloud infrastructure,” said a Brussels-based competition lawyer. “It signals that the Commission is willing to stretch the regulation to cover gateways to the digital economy.”

Amazon and Microsoft have not yet publicly responded to the preliminary findings. The companies have until 22 July 2026 to submit arguments before the Commission finalises its decision.

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