On June 25, 2026, the European Commission issued a preliminary finding that Amazon Web Services (AWS) and Microsoft Azure should be designated as gatekeepers under the Digital Markets Act (DMA). The decision, first reported by sources close to the investigation, marks a watershed moment for cloud regulation and signals the EU’s intent to dismantle what it views as entrenched dominance in the cloud infrastructure market. If finalized, the designation would subject both platforms to a sweeping set of pro-competition obligations, reshaping how public cloud services operate within the European Economic Area.
The DMA’s Gatekeeper Criteria Applied to Cloud
The DMA, which became enforceable in May 2023, aims to ensure contestable and fair markets in the digital sector. A company is designated as a gatekeeper if it provides a core platform service, has a significant impact on the EU internal market, serves as an important gateway for business users to reach end users, and enjoys an entrenched and durable position. The European Commission’s preliminary investigation found that AWS and Azure meet these thresholds for their cloud infrastructure and platform-as-a-service offerings.
This is not the first time cloud services have drawn regulatory scrutiny. The DMA originally targeted online intermediation services, search engines, social networks, video-sharing platforms, operating systems, and advertising services. However, the Act’s framework allows the Commission to add new core platform services through market investigations. The June 2026 finding follows a formal market investigation launched in late 2024 into cloud computing services, responding to persistent complaints from European software vendors, startups, and open-source communities about unfair licensing, data egress fees, and technical lock-in.
Why AWS and Azure?
According to the Commission’s preliminary assessment, AWS and Azure together command over 70% of the cloud infrastructure market in the EU. Amazon’s AWS leads with an estimated 35–40% share, while Microsoft Azure holds roughly 30–35%. Google Cloud trails at around 10–12%, and a fragmented tail of local and regional providers accounts for the remainder. The Commission’s analysis focused on market shares that have remained stable or increased since 2020, high barriers to entry due to massive capital expenditure requirements, and the platforms’ role as unavoidable trading partners for businesses moving to the cloud.
Commissioner for Internal Market, Thierry Breton, stated in a closed-door briefing that “the cloud has become the backbone of Europe’s digital economy, and two players have built insurmountable advantages that stifle innovation and choice.” The investigation highlighted practices such as:
- Data egress fees: Charges that make it prohibitively expensive for companies to move their data to another provider, effectively locking in customers.
- Unfair licensing terms: Allegations that Microsoft uses restrictive software licensing to penalize customers running Windows Server or SQL Server on non-Azure clouds.
- Interoperability barriers: Proprietary APIs and service integrations that force customers to adopt entire ecosystems rather than best-of-breed solutions.
- Self-preferencing: Instances where cloud providers give their own adjacent services (e.g., database, AI tools) preferential placement or performance.
These findings echo years of criticism from trade groups such as CISPE (Cloud Infrastructure Services Providers in Europe), which had previously reached a settlement with Microsoft over licensing practices but continued to push for legislative remedies.
Potential Obligations and Impact
Gatekeepers under the DMA face a mandatory list of dos and don’ts. For cloud services, the likely obligations include:
- Ban on data egress fees: Gatekeepers may be required to allow free and effective data portability, including free bulk data transfers out of their cloud.
- Interoperability mandates: Gatekeepers must provide technically feasible interfaces or APIs that enable third-party applications and services to interoperate with their core platform services.
- Separation of services: Gatekeepers might be prevented from bundling their cloud infrastructure with other services, such as productivity suites or databases, in a way that forecloses competition.
- Audited pricing transparency: Gatekeepers may need to disclose the full cost structure of their services and ensure that partner or third-party offerings are not discriminated against in pricing algorithms.
These rules would fundamentally alter how AWS and Azure sell and integrate their services. For instance, Microsoft’s deeply woven Azure–M365–Windows ecosystem could be forced to offer non-Azure customers the same seamless experience. Amazon would lose a lucrative revenue stream tied to data movement and might have to offer its machine learning services on competitive clouds.
The table below summarizes key DMA provisions and their likely translation to cloud gatekeepers:
| DMA Obligation | Application to Cloud Services |
|---|---|
| Prohibition on self-preferencing | Cloud providers cannot rank their own SaaS or PaaS offerings above competitors’ in their marketplaces or search results. |
| Data access and portability | Business users can export all data and configurations free of charge within a set time frame. |
| Interoperability of ancillary services | Third-party auditing, security, or management tools must get API access on equal terms. |
| Ban on anti-steering | Providers cannot contractually or technically prevent customers from moving workloads to competitors. |
| Merger and acquisition reporting | Any acquisition in the digital sector must be notified to the Commission, even if below normal thresholds. |
Reactions from Microsoft and Amazon
Neither company has publicly commented yet on the preliminary finding, but insiders suggest both are preparing vigorous defenses. Microsoft, which narrowly avoided a formal antitrust complaint over its cloud licensing practices in 2024, is expected to argue that the cloud market is dynamic and that Google and regional players like OVHcloud, Deutsche Telekom’s T-Systems, and Scaleway offer viable alternatives. Amazon will likely emphasize its small profit margins in Europe and the vast infrastructure investments that benefit thousands of businesses.
However, industry observers point out that similar arguments were rejected when the DMA designated Alphabet, Apple, Meta, Amazon, and Microsoft as gatekeepers for other core platform services in September 2023. The European Commission has shown a willingness to enforce the DMA strictly, having already launched non-compliance investigations into several gatekeepers that could result in fines of up to 10% of global annual turnover.
What Windows Admins and IT Pros Need to Know
For Windows administrators and IT professionals managing hybrid or cloud-native environments, the DMA designation could bring both opportunities and disruptions.
- Azure Hybrid Benefit changes: Microsoft’s popular licensing program that allows Windows Server and SQL Server licenses with Software Assurance to be used in Azure may need to be extended to competing clouds on equal terms. This could lower costs for organizations choosing multi-cloud strategies.
- Management tool fragmentation: If Azure is forced to unbundle services, IT teams accustomed to the seamless Azure portal experience may need to adopt third-party tools for monitoring, cost management, and security across clouds—potentially increasing initial complexity but reducing vendor lock-in.
- Data mobility: Mandatory free egress would simplify disaster recovery and multi-cloud failover architectures, allowing admins to move petabytes between providers without punishing fees. This could accelerate adoption of hyper-converged and edge computing solutions that span multiple infrastructures.
- Licensing clarity: Clearer rules around software licensing could finally resolve the long-standing “bring your own license” confusion that has dogged Microsoft shops running virtual machines on AWS or Google Cloud.
James Bolton, a senior cloud architect at a Frankfurt-based fintech firm, told us: “If the DMA forces interoperability, we can finally design applications that run where they run best, not where our legacy licenses trap us.” Nonetheless, he cautioned that short-term compliance adjustments could lead to temporary service disruptions or API deprecations.
Compliance Timeline and Next Steps
The preliminary finding triggers a official process under Article 17 of the DMA. AWS and Azure have until September 2026 to submit written representations and request a hearing. The Commission then has until January 2027 to issue a final designation decision. Once designated, the gatekeepers must comply with the DMA obligations within six months, meaning a compliance deadline by mid-2027.
Non-compliance can lead to investigations, interim measures, and fines. Given the complexity of restructuring cloud architectures and licensing models, industry analysts predict that both companies will engage in intense negotiations with the Commission on the scope of obligations. Yesterday, a senior Commission official hinted at the possibility of “tailored remedies” if the platforms present credible plans to address market failures voluntarily.
Broader Implications for the Cloud Industry
The DMA’s expansion into cloud infrastructure is being closely watched by global regulators. The UK’s Competition and Markets Authority (CMA) has also been examining cloud competition and may adopt similar principles under its digital markets unit. In the US, the Federal Trade Commission under Chair Lina Khan has signaled interest in cloud lock-in practices, though no legislative framework like the DMA exists yet.
For European cloud providers, the preliminary finding is a long-awaited victory. Alberto Zilio, CEO of Italian cloud startup Eridanis, welcomed the move: “For years we have fought against opaque licensing and data gravity tricks. This DMA action will finally give customers the freedom to choose their cloud based on performance and price, not lock-in.”
Yet some small providers worry that the compliance burden of interoperability mandates could inadvertently favor large players who have the engineering resources to implement DMA requirements faster. The Commission may need to provide detailed technical guidelines to ensure a level playing field.
Investors are also recalibrating. Following the news, shares of pure-play cloud companies like DigitalOcean and UpCloud saw a slight uptick in European trading, while broader tech indices remained flat. Analysts at Deutsche Bank noted that the DMA could open a €4 billion market opportunity for alternative cloud providers over the next three years.
Conclusion: A New Era for European Cloud
The European Commission’s preliminary designation of AWS and Azure as cloud gatekeepers under the Digital Markets Act is a landmark step that could rebalance power in the cloud computing market. While the final picture will depend on the outcome of consultations and possible court challenges, the direction is clear: the EU is determined to enforce openness, portability, and fairness in cloud services. For Windows admins and IT decision-makers, now is the time to audit existing cloud dependencies, explore multi-cloud architectures, and stay informed about compliance timelines to turn regulatory disruption into strategic advantage.