Microsoft Azure and Amazon Web Services will be designated under the EU's Digital Markets Act, sources say, marking a significant regulatory shift in cloud computing oversight.
An EU investigation is expected to determine that Microsoft's Azure and Amazon Web Services meet the thresholds under the Digital Markets Act (DMA), subjecting both platforms to stricter regulatory requirements.
The designation places the cloud giants among Europe's most heavily regulated tech companies, alongside Google, Meta, and Apple. Once designated as "gatekeepers" under the DMA, Azure and AWS will face obligations including increased transparency requirements, restrictions on self-preferencing, and mandatory interoperability measures.
The move signals the EU's expanding focus on cloud infrastructure as a critical sector. Unlike previous tech regulatory actions targeting consumer-facing platforms, this investigation targets the foundational services that power enterprise operations and AI development across the continent.
Azure and AWS control a combined majority of the European cloud market, with AWS leading at roughly 32% market share and Azure holding approximately 23%. The DMA designation would require both companies to modify business practices and submit to EU oversight of their competitive conduct.
The regulatory decision comes as AI infrastructure becomes increasingly central to technological competition. Cloud platforms serve as gatekeepers for computational resources, data access, and AI model deployment—factors that influenced the EU's investigation timeline.
Both companies will have opportunities to respond to the preliminary findings before a final determination. The formal designation process typically includes a comment period and potential negotiations over remedies.
The DMA, which entered into force in 2024, represents the EU's most aggressive attempt to regulate digital market structures. Designated gatekeepers must comply within months of formal designation or face substantial fines.
This development reflects broader European policy toward Big Tech, emphasizing structural regulation over behavioral enforcement. The cloud designation may prompt similar scrutiny of infrastructure providers in other regions, particularly in the United States and Asia.
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