Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC targets AWS and Azure cloud services under DMA, (Jun 25, 2026)

By George Basharis, J.D.

The European Commission preliminarily concluded that Amazon’s and Microsoft’s cloud platforms, AWS and Azure, respectively, function as digital gatekeepers despite falling below the DMA’s quantitative thresholds.

Cloud computing services provided by Amazon and Microsoft may soon become subject to the European Union’s Digital Markets Act (DMA) after the European Commission (EC) reached a preliminary conclusion that Amazon Web Services (AWS) and Microsoft’s Azure function as gatekeepers in the cloud sector. The Commission said the companies’ dominant market positions, extensive ecosystems, and ability to capture much of the growing demand for cloud services driven by artificial intelligence justify designation even though the services do not meet the DMA’s quantitative thresholds.

In a preliminary finding, the Commission informed Amazon and Microsoft of its preliminary view that AWS and Azure should be designated as gatekeepers under the DMA for their cloud computing services. According to the Commission, AWS and Azure are the largest and second largest cloud computing providers in the European Union and serve as important gateways connecting businesses with their customers. Although the platforms fall below the numerical thresholds ordinarily used for designation, the Commission concluded that other statutory factors support bringing the services within the DMA’s regulatory framework.

Market dominance. The preliminary findings emphasize that Amazon and Microsoft have already been designated as gatekeepers for other digital services, demonstrating what the Commission described as their significant impact on the EU’s internal market. The Commission also found that AWS and Azure have generated substantial revenue while expanding their operational capacity and investments at a pace that appears to have significantly outstripped competing cloud providers.

The Commission further concluded that both companies have vast and entrenched user bases and benefit from lock-in effects, high switching costs, and broad digital ecosystems. Those characteristics make it difficult for customers to switch to competing cloud providers and reinforce the companies’ long-standing market positions, according to the Commission.

Artificial intelligence also played a significant role in the Commission’s analysis. It found that AWS and Azure have assembled portfolios of AI tools and partnerships that have become decisive factors in customers’ cloud procurement decisions. While AI is driving increased demand for cloud infrastructure, the Commission preliminarily determined that both companies appear able to capture much of that additional demand within their own ecosystems, further strengthening their competitive positions. The Commission further pointed to the companies’ long-standing leadership in the European cloud computing market as evidence that they occupy entrenched and durable positions, another factor supporting designation under the DMA.

DMA standards. The EC described cloud computing as an increasingly important component of the European economy that supports not only digital services but also industries such as manufacturing, retail, healthcare, and financial services. It also identified cloud infrastructure as the backbone for developing and operating AI services. According to the Commission, maintaining a fair, open, and competitive cloud market is necessary to promote innovation and strengthen Europe’s strategic autonomy. The DMA was enacted to ensure fair and contestable digital markets by imposing obligations on large online platforms that serve as critical gateways between businesses and users while prohibiting specified unfair practices.

Although the DMA generally relies on quantitative thresholds, such as user numbers, to identify gatekeepers, the Commission explained that it also has authority to investigate companies that fall below those thresholds. In those cases, it considers whether a company has a significant impact on the internal market, whether its services provide an important gateway for business users to reach end users, and whether it occupies an entrenched and durable market position. The Commission also evaluates competitive factors including the provider’s size, the number of users, network effects, economies of scale and scope, lock-in effects, switching costs, and whether the company benefits from vertical integration or a conglomerate corporate structure.

Cloud competition. The EC launched investigations on November 18, 2025, to determine whether Amazon and Microsoft should be designated as gatekeepers for their cloud computing services. During the investigations, it gathered information from business users, competitors, and other stakeholders.

Separately, the Commission opened an investigation that day to examine whether the DMA’s existing obligations adequately address practices that may reduce competition or otherwise be unfair in the cloud computing sector. All three investigations are being conducted with assistance from the Dutch Authority for Consumers and Markets through a joint investigative team established under the DMA’s cooperation rules.

Ribera, Virkkunen comments. EC Executive Vice-President Teresa Ribera for Clean, Just and Competitive Transition said Europe is becoming increasingly dependent on cloud computing services across the public and private sectors and that ensuring a competitive marketplace will help provide secure, sustainable, and interoperable cloud services. Executive Vice-President Henna Virkkunen also described cloud computing as a cornerstone of Europe’s economy and a prerequisite for AI, saying fair and competitive cloud markets are essential to fostering trust and strengthening Europe’s technological sovereignty.

Next steps. The Commission emphasized that its preliminary findings do not determine the outcome of the investigations. Amazon and Microsoft will have an opportunity to review the investigation file and submit written responses before any final decisions are made. If the preliminary findings are confirmed, the Commission will formally designate AWS and Azure as gatekeepers under the DMA. Amazon and Microsoft would then have six months to bring their cloud computing services into compliance with the statute’s requirements.

Companies: Amazon; Microsoft

News: Antitrust