EU moves to classify Amazon and Microsoft cloud services as gatekeepers under Digital Markets Act

The European Union has taken a step towards bringing cloud computing under its landmark Digital Markets Act (DMA), with regulators issuing preliminary findings that could designate Amazon Web Services (AWS) and Microsoft Azure as "gatekeepers" under the bloc's competition framework, as per a Reuters report.If confirmed, the designation would subject the two cloud giants to a range of obligations and restrictions designed to curb market dominance. These include requirements around interoperability, data portability and limits on practices that could favour their own services over those of competitors.The move marks a significant expansion of the DMA, which has so far focused on consumer-facing digital platforms such as search engines, social media networks and app stores. Extending the rules to cloud infrastructure would bring one of the most critical layers of the digital economy under closer regulatory scrutiny.According to the European Commission, cloud services have become increasingly important for businesses across the region, with more than half of EU companies now relying on cloud infrastructure. Regulators also highlighted the growing role of cloud platforms in supporting artificial intelligence development and deployment.The findings follow a seven-month investigation into the cloud computing market. The Commission cited the scale, financial strength and entrenched customer bases of AWS and Azure, along with high switching costs and customer lock-in effects, as key reasons for considering the designation.Regulators also pointed to the growing influence of AI-related products, services and partnerships offered by both companies, noting that these factors are increasingly shaping enterprise cloud purchasing decisions.Amazon criticised the assessment, arguing that it overlooks the range of cloud providers available to European customers and could discourage investment and innovation in the region. Microsoft, meanwhile, expressed concerns that regulators were not giving sufficient attention to the growing presence of rival cloud providers, particularly in the AI space.Both companies will have an opportunity to respond to the Commission's preliminary findings before a final decision is made in the coming months.The outcome could have major implications for the cloud computing sector, potentially reshaping how leading providers operate in Europe as regulators seek greater competition, transparency and technological sovereignty in the digital economy.Also read: Google opens Play Store to external and third-party payments from June 30: All you need to know