Sources: an EU investigation is set to find that Azure and AWS meet DMA thresholds, as the EU strengthens its regulatory scrutiny of the cloud sector

Cloud providers will now face new compliance obligations and potential restrictions on how they operate their services in the EU.

Microsoft Azure and Amazon Web Services are anticipated to be designated as 'gatekeepers' under the European Union's Digital Markets Act (DMA). This designation means both cloud providers will be subject to a stringent set of rules designed to ensure fair competition within the digital sector. The European Commission's investigation is reportedly concluding that these services meet the quantitative thresholds established by the DMA, signaling a significant increase in regulatory oversight for major cloud infrastructure providers operating within the EU. This move indicates a broader trend of intensified scrutiny by EU regulators on the power and practices of dominant technology companies.

The impending designation of Azure and AWS as gatekeepers under the DMA marks a critical juncture in the regulation of cloud computing services. It suggests that the EU views large-scale cloud infrastructure as a key area where market power needs to be actively managed to prevent anti-competitive practices. This classification could lead to mandated changes in how these companies offer their services, potentially impacting everything from pricing and interoperability to data access for third-party developers. The investigation's conclusion implies that current market structures in cloud are seen as concentrated enough to warrant direct intervention under the DMA's stringent framework.

This regulatory development signals a growing willingness by authorities to apply broad economic regulations to digital platforms, extending beyond traditional consumer-facing applications to the foundational infrastructure they rely on. For businesses and developers operating on Azure and AWS, this could mean a more level playing field with new opportunities or increased complexity as providers adapt to new rules. The EU's proactive stance may also encourage other jurisdictions to consider similar regulatory approaches to their own major cloud markets, potentially creating a fragmented global regulatory environment for cloud services.