Key takeaways
- The European Commission may reveal next week that Microsoft Azure and Amazon Web Services meet the threshold for regulation in the Digital Markets Act.
- A final decision is expected by the end of 2025, although the timeline remains flexible.
- Upon formal classification, both systems must adhere to requirements related to interoperability, preventing vendor lock-in, and eliminating preferential treatment of private services.
- This investigation stems from a November 2024 EU announcement acknowledging that both companies maintain “exceptionally dominant market positions” in cloud infrastructure.
- Multiple major service disruptions affecting AWS and Azure have intensified regulatory focus on this sector.
The European Union is moving toward bringing Microsoft Azure and Amazon Web Services under regulatory oversight through Digital Markets Act legislation. Bloomberg reported that the European Commission may reveal its initial assessment next week.
The DMA framework specifically addresses major digital platforms that have what European authorities describe as “gatekeeper” market influence. If Azure and AWS achieve official gatekeeper status, they will be obligated to adhere to regulations designed to ensure competitive fairness.
Implications of Gatekeeper classification
Once designated under the DMA, both cloud platforms must meet interoperability standards. In addition, they will face restrictions designed to eliminate practices that lock customers within their ecosystems and prohibit giving preferential treatment to their own offerings over competing alternatives.
Regulators expect to finalize their decision before the end of 2025. However, individuals familiar with the proceedings indicate that the timeline is still subject to adjustment.
The examination began in November 2024 after the European Commission recognized it Microsoft Amazon maintains an exceptionally strong market position in cloud computing. This announcement began the formal investigation process.
European lawmakers created the DMA to combat monopolistic practices among dominant technology companies operating across the continent. The legislation has previously been applied against companies including Apple and Google in various technology sectors.
Service outages intensify regulatory pressures
Regulatory attention on these cloud infrastructure leaders has been intensified after several high-profile service failures. Os It experienced an extended outage lasting about 15 hours affecting major customers including Apple, McDonald’s and Epic Games. An apparent Azure flaw in October disrupted Alaska Airlines’ passenger check-in infrastructure and halted legislative processes in the Scottish Parliament.
These technical failures have highlighted the extent to which modern digital commerce depends on a concentrated group of cloud providers.
Both Microsoft and Amazon declined to provide data when contacted for this report.
The committee has not yet published its official assessment publicly. If the preliminary conclusions remain unchanged, both organizations will have the opportunity to provide responses before any binding decision.
Cloud computing infrastructure has emerged as a priority area of oversight for EU regulators, reflecting the rapid expansion of the sector and the large number of companies relying on these platforms.
This investigation is one component of a comprehensive effort by the European Union to enforce competition standards across the largest operators of digital infrastructure services.
