EU Closer to Designating AWS and Azure as Gatekeepers Under DMA

The European Commission is moving closer to designating Amazon Web Services (AWS) and Microsoft Azure as gatekeepers under the Digital Markets Act (DMA). This could lead to new rules for these cloud platforms, forcing them to change how they handle interoperability, customer lock-in, and self-preferencing in one of their most important markets.

The Commission has already taken a preliminary view that AWS and Azure should be designated as gatekeepers due to their significant market position, switching costs, and ecosystem advantages. This designation would require the cloud businesses to reduce barriers to switching providers and improve interoperability.

Cloud customers often build applications deeply around proprietary tools, making migrations expensive and technically difficult. Microsoft has said it continues to engage with regulators, while AWS has argued that European customers already have extensive choice.

The regulatory risk is becoming more concrete, but the financial impact remains uncertain until the Commission issues its final ruling and spells out exactly what AWS and Azure would need to change.