EU Edges Closer to Regulating Amazon's AWS, Microsoft's Azure as Gatekeepers

Amazon's AWS and Microsoft's Azure may soon face stricter regulations in Europe. EU officials have moved closer to designating the two cloud platforms as gatekeepers under the Digital Markets Act (DMA). This could force them to change how they handle interoperability, customer lock-in, and self-preferencing in one of their most important markets.

The European Commission has taken a preliminary view that AWS and Azure should be designated as gatekeepers due to their market position, switching costs, and ecosystem advantages. A final decision has not been made yet, but if the platforms are formally designated, they could face new requirements aimed at reducing barriers to switching providers and improving interoperability.

Microsoft has stated that it continues to engage with regulators, while AWS has argued that European customers already have extensive choice. The biggest issue is not whether AWS or Azure immediately lose customers, but whether DMA rules increase compliance costs or weaken some of the advantages that make customers reluctant to switch.