Key Points
- European regulators are poised to reveal next week that Microsoft Azure and Amazon Web Services meet the threshold for Digital Markets Act regulation.
- The final ruling is anticipated by late 2025, although the schedule remains subject to adjustment.
- Gatekeeper status would impose obligations related to data portability, vendor lock-in prevention, and anti-competitive preferencing.
- The investigation stems from a November 2024 EU determination that both corporations maintain dominant market positions in cloud infrastructure.
- High-profile service disruptions at AWS and Azure over recent years have intensified regulatory scrutiny.
European authorities are preparing to bring Microsoft’s Azure and Amazon Web Services under the regulatory umbrella of the Digital Markets Act. The European Commission may reveal its initial assessment as soon as next week, Bloomberg reported.
The DMA legislation focuses on major digital platforms that possess what Brussels defines as “gatekeeper” influence. Should Azure and AWS receive formal designation, they would become subject to a comprehensive regulatory framework aimed at ensuring competitive fairness.
Implications of Gatekeeper Status
With DMA classification, both cloud platforms would face mandates concerning interoperability standards. Additional constraints would target practices that create customer dependency and self-preferential behavior — where companies promote their proprietary offerings at the expense of competitors.
A definitive determination is projected before 2025 concludes. Nevertheless, individuals briefed on the proceedings indicate the timeline remains flexible.
The examination began in November 2024 after the European Commission declared that Microsoft and Amazon commanded exceptionally powerful positions within cloud computing markets. This acknowledgment triggered an official investigation.
The DMA framework was established to curb monopolistic conduct among dominant technology firms operating in Europe. It has previously been enforced against corporations including Apple and Google across different sectors.
Service Failures Intensified Oversight
Regulatory attention toward these cloud behemoths has intensified following notable service failures. AWS experienced an approximately 15-hour outage that affected major clients including Apple, McDonald’s, and Epic Games. Another Azure disruption in October disabled Alaska Airlines’ passenger check-in operations and interrupted legislative proceedings at Scotland’s Parliament.
These episodes highlighted the digital economy’s heavy reliance on a concentrated group of cloud infrastructure providers.
Both Microsoft and Amazon declined to provide statements when contacted for this report.
The Commission has yet to release its official preliminary findings. Should the initial assessment stand, both organizations will receive opportunities to present counterarguments before any binding decision takes effect.
Cloud computing infrastructure has emerged as a priority enforcement area for EU regulators, reflecting the sector’s rapid expansion and the widespread business dependence on these platforms.
This probe represents one component of the EU’s comprehensive effort to enforce competitive standards across the largest operators in digital infrastructure markets.
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