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EU Prepares to Designate Amazon and Microsoft as DMA Gatekeepers for Cloud

Published
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9

Why it matters

The European Commission is preparing preliminary findings that Amazon Web Services and Microsoft Azure qualify as "gatekeepers" under the Digital Markets Act, despite neither company meeting the law's strict numerical thresholds. The designation rests on qualitative grounds: AWS and Azure control approximately 70% of European cloud infrastructure revenue and function as critical infrastructure for businesses across the continent. The Commission launched its market investigation in November 2025 and is expected to announce preliminary findings as early as next week, with a final ruling anticipated by end of 2026.

If confirmed, the gatekeeping designation will require AWS and Microsoft to comply with DMA obligations within six months. This means standardizing APIs to reduce vendor lock-in, restructuring cloud egress fees, and ensuring interoperability with competitors. The Commission's investigation examined obstacles to switching providers, limited access to business user data, and contractual terms that favor the incumbents. A definitive ruling would establish new obligations specifically tailored to the cloud market.

For counsel advising cloud providers or their enterprise customers, this development carries immediate consequences. AWS and Microsoft face potential structural fines up to 10% of annual global revenue for non-compliance. More broadly, the designation signals the EU's willingness to regulate dominant platforms on qualitative grounds when they control essential infrastructure, even without meeting user-count or revenue benchmarks. The ruling will likely reshape cloud contracting terms, pricing models, and data portability across Europe—and may influence regulatory approaches in other jurisdictions watching the DMA's enforcement trajectory.

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