The European Commission announced on June 25, 2026 that it has preliminarily concluded that Amazon Web Services and Microsoft Azure meet the criteria to be designated as gatekeepers under the Digital Markets Act, a landmark decision that could reshape the continent's cloud computing landscape. The finding, still subject to a final determination after a consultation period, would impose strict new interoperability, data portability, and anti-self-preferencing rules on the two hyperscalers.

If finalized, the designations would mark the first time cloud infrastructure services fall under the DMA's scope, extending the regulation's reach beyond the digital platforms, search engines, and operating systems originally targeted. The Commission's statement highlighted that both AWS and Azure—which together command over 55% of the European cloud market—have entrenched positions that limit competition and harm business users.

"Today's preliminary finding reflects our commitment to ensuring open and contestable cloud markets," said EU competition chief Margrethe Vestager. "Business users and governments across Europe increasingly depend on a handful of providers for critical infrastructure. The DMA gives us tools to prevent gatekeepers from using their power to lock customers in or disadvantage rivals."

The decision follows a two-year market investigation that began in mid-2024, shortly after the DMA came into full effect for the first cohort of gatekeepers—Alphabet, Amazon (for its marketplace), Apple, ByteDance, Meta, and Microsoft (for Windows OS and LinkedIn). At that time, the Commission signaled it was probing cloud services separately given their distinct dynamics.

What gatekeeper status means for AWS and Azure

Under the DMA, gatekeepers must comply with a set of do's and don'ts codified in Articles 5, 6, and 7. For AWS and Azure, the most transformative obligations would center on:

  • Interoperability: The companies would be required to provide free, effective, and high-quality interoperability with their cloud infrastructure services. This means rivals could offer tools that seamlessly move workloads, manage identities, or orchestrate resources across clouds without artificial barriers.
  • Data portability: Business customers must be able to easily export their data, application configurations, and machine learning models to alternative providers or hybrid setups. Gatekeepers cannot impose technical, contractual, or commercial restrictions that hinder switching.
  • No self-preferencing: AWS cannot prioritize its own services—such as Amazon SageMaker or DynamoDB—in search results or default configurations over third-party offerings available through its marketplace. Similar rules apply to Azure with its AI, database, and analytics services.
  • Fair licensing: The gatekeepers may be barred from using restrictive licensing terms, such as the controversial “bring your own license” restrictions that critics say make it more expensive to run Microsoft software on non-Azure clouds.
  • Data combination limits: Data generated by business customers on the cloud cannot be combined with personal data from the gatekeeper's other services without explicit consent, reducing cross-subsidization advantages.
  • Uninstall and default changes: Enterprise customers must have the right to easily remove pre-installed software or change default settings that steer them toward the gatekeeper's ecosystem.

Non-compliance can result in fines of up to 10% of global annual turnover, rising to 20% for repeated infringements, plus structural remedies. For context, AWS generated $100 billion in revenue in 2025, while Microsoft’s Intelligent Cloud segment surpassed $110 billion.

Why the EU targeted cloud gatekeepers

The market investigation found evidence that AWS and Azure leverage their dominance in ways that echo practices of previously designated gatekeepers. Key concerns include:

  1. High switching costs: Technical lock-in through proprietary APIs, custom IAM frameworks, and egress fees make it prohibitively expensive and complex for enterprises to migrate to smaller providers like OVHcloud, Hetzner, or even Google Cloud.
  2. Forced ecosystem stickiness: Bundling of AI tools, databases, and developer services creates de facto platform lock-in. Once a company trains models on SageMaker or builds on Azure OpenAI Service, moving becomes impractical.
  3. Unfair licensing practices: Microsoft’s licensing changes in 2019 and 2022, which made it more expensive to run Windows Server and SQL Server on AWS or Google Cloud, have been a recurring grievance. While Microsoft argued these were legitimate business decisions, the Commission views them as gatekeeper behavior that harms competing cloud infrastructures.
  4. Market concentration risks: The combined share of AWS and Azure has grown from 47% in 2020 to over 55% in 2026 in Europe. Digital sovereignty concerns magnify the issue, as EU governments increasingly migrate sensitive workloads to public clouds.

The preliminary finding also notes the emerging role of cloud in AI, where the gatekeepers' control over computing resources and foundation models could foreclose opportunities for European AI startups.

Microsoft’s dual gatekeeper status

Microsoft is already designated as a gatekeeper for Windows OS and LinkedIn, but Azure’s addition—along with potential future designations for the Microsoft 365 suite and Edge browser—would make it the most comprehensively regulated tech company under the DMA. AWS, meanwhile, would join its parent company Amazon, which has gatekeeper status for its online marketplace and advertising services.

A Microsoft spokesperson said: "We will carefully review the preliminary findings and engage constructively with the Commission during the consultation period. We remain committed to providing European customers with secure, scalable, and innovative cloud services that meet their sovereign requirements."

AWS issued a similar statement, emphasizing its track record of supporting customer choice and noting that it already offers free data transfer out to switch providers—though critics point out that egress fee waivers are limited and don't cover indirect switching costs.

Implications for Windows and enterprise users

The designation could have tangible effects on Windows-centric IT environments. If the Commission mandates changes to Azure’s licensing, enterprises may finally get relief from the so-called “Azure tax,” where running Microsoft workloads on rival clouds incurs additional fees. For Windows administrators, this could mean:

  • Easier hybrid and multi-cloud architectures with more predictable cost models.
  • Mandatory APIs for identity federation, enabling Active Directory to work more neutrally across AWS, GCP, and smaller hosts.
  • Potential requirement to document and open APIs for virtual desktop services like Azure Virtual Desktop, allowing third-party brokers to compete.

However, smaller cloud providers and open-source advocates caution that enforcement will be difficult. "The DMA’s promise hinges on the technical implementation details," said a spokesperson for the Cloud Infrastructure Services Providers in Europe (CISPE), which has long lobbied against Microsoft’s licensing. "If gatekeepers can still design APIs that meet the letter but not the spirit—requiring reverse-engineering or imposing rate limits—then little will change."

Timeline and what comes next

The preliminary finding triggers a 60-day public consultation, during which AWS, Microsoft, and other stakeholders can submit evidence and arguments. A final designation decision is expected by October 2026. Once designated, the companies would have six months to comply, meaning concrete changes could begin rolling out by spring 2027.

In parallel, the Commission is exploring whether Google Cloud and Alibaba Cloud also meet the DMA thresholds in certain segments, though their smaller market shares make immediate designations less likely.

Broader political and trade context

The move adds a new layer of tension to EU-US tech relations, already strained by earlier DMA designations. The US government has previously criticized the DMA as disproportionately targeting American companies. Cloud-specific rules could escalate friction, especially as the US pushes its own cloud security frameworks that often favor domestic providers.

Yet European officials argue the DMA is a neutral tool. "This is about market fairness, not nationality," Vestager said. "If a European hyperscaler existed with the same power, it would face the same rules."

For Windows enthusiasts and IT pros, the decision signals a future where the cloud market may finally open up, but also a period of uncertainty as gatekeepers adapt their platforms. The coming months will be critical in shaping whether the DMA delivers on its promise of contestable digital markets—or becomes another layer of compliance theater.

Key takeaways

  • The EU has preliminarily found AWS and Azure to be gatekeepers under the DMA, a first for cloud infrastructure.
  • If finalized, they must enable data portability, interoperability, and end self-preferencing by mid-2027.
  • Microsoft’s licensing practices for Windows and SQL Server on rival clouds are squarely in the crosshairs.
  • A final decision is expected by October 2026, with compliance deadlines six months later.
  • The move intensifies EU-US regulatory friction but could bring lower costs and more choice for European cloud users.