EU opens cloud gatekeeper probes for Amazon and Microsoft

The European Commission launched three market investigations into cloud computing services on November 18, 2025, examining whether Amazon Web Services and Microsoft Azure should be designated as gatekeepers under the Digital Markets Act. Two investigations will assess whether these services meet criteria for gatekeeper designation despite not reaching DMA thresholds for size, user numbers and market position. A third investigation will examine whether existing DMA rules can effectively address competitive concerns in the cloud sector.

Cloud computing serves as critical infrastructure for digital services and artificial intelligence development across the European Union. According to the Commission's announcement, these services must operate in a fair, open and competitive environment to foster innovation, trust and Europe's strategic autonomy.

Strong market positions under scrutiny

Recent market analyses indicate that Microsoft Azure and Amazon Web Services occupy very strong positions in relation to businesses and consumers. The Commission will assess whether certain features of the cloud sector may further reinforce the position of these two platforms.

The investigations examine whether these cloud computing services qualify as important gateways between businesses and users under DMA definitions. If the Commission concludes that Microsoft Azure and Amazon Web Services meet gatekeeper criteria, the cloud computing services would be added to the list of core platform services for which Amazon and Microsoft are already designated as gatekeepers.

The Dutch competition authority, Authority for Consumers and Markets, supports the Commission in these investigations through a joint investigative team, as provided for in cooperation rules under the DMA.

Timeline and compliance requirements

The Commission aims to conclude the market investigations on Microsoft Azure and Amazon Web Services within 12 months. Should the Commission designate Microsoft and Amazon as gatekeepers for their cloud computing services, the companies would have six months to ensure full compliance of their designated cloud computing services with DMA obligations.

The market investigation assessing the DMA's application to cloud markets will result in a final report to be published within 18 months. This report may propose updates to DMA obligations regarding cloud services through a delegated act pursuant to Article 12 and 49 of the DMA.

Scope of third investigation

The third market investigation gathers information from relevant market players to assess whether current DMA obligations effectively address practices that limit competitiveness or fairness in the cloud sector. The investigation will cover obstacles to interoperability between cloud computing services, limited or conditioned access for business users to data, tying and bundling services, and potentially imbalanced contractual terms.

These concerns mirror those identified in other jurisdictions. Australia's competition authority identified potential risks to competition in cloud computing, including technical barriers to interoperability and high egress fees when moving data out of cloud ecosystems, according to the Digital platform services inquiry final report.

Gatekeeper designation process

The DMA identifies large digital platforms that provide important gateways between businesses and users. Even if a large digital platform does not meet quantitative thresholds for size, user numbers or market position, the Commission may investigate whether the provider should be designated as a gatekeeper if it controls an important gateway position.

When conducting such investigations, the Commission assesses elements including the provider's size, number of users, network effects, scale and scope effects, lock-in and switching costs, and the conglomerate corporate structure or vertical integration of the company.

This provision allows regulatory authorities to designate gatekeepers based on qualitative assessments beyond purely quantitative metrics. Previous DMA market investigation approaches have examined whether European and Chinese firms exhibiting similar characteristics to currently designated gatekeepers should face similar scrutiny.

Executive statements on cloud sovereignty

"Cloud computing services are vital for Europe's competitiveness and resilience," stated Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition. "We want this strategic sector to grow on fair, open, and competitive terms."

Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, emphasized cloud computing's role in powering Europe's digital future. "Such services should be offered in a fair, open and competitive environment that fosters trust and secures Europe's tech sovereignty," Virkkunen stated.

Implications for digital markets

The investigations arrive as cloud infrastructure becomes increasingly central to digital advertising and marketing operations. Amazon DSP has expanded significantly throughout 2025, integrating Microsoft Monetize SSP as a preferred partner and becoming the designated transition path for Microsoft Invest customers. These platform integrations demonstrate the interconnected nature of cloud computing and advertising technology infrastructure.

Cloud services increasingly support artificial intelligence capabilities across the advertising ecosystem. Amazon's infrastructure developments include cross-cloud data collaboration technology that operates across AWS, Google Cloud and Microsoft Azure, highlighting how marketing technology depends on cloud infrastructure from multiple providers.

The timing of these investigations parallels ongoing DMA enforcement efforts against currently designated gatekeepers. The Commission has pursued multiple compliance investigations since DMA obligations became legally binding in March 2024, with several cases resulting in non-compliance decisions and substantial fines.

Marketing professionals tracking regulatory developments note that DMA expansion to cloud services could affect how businesses access computational resources, data storage and analytics capabilities essential for digital advertising operations. Concentration concerns arise as AI demand increases, with implications for how smaller companies access the infrastructure necessary for competitive marketing technology deployment.

Industry context and competitive dynamics

The Netherlands Authority for Consumers and Markets and France's Autorité de la concurrence have carried out market investigations into the cloud sector. The Competition and Markets Authority in the United Kingdom and Denmark's Konkurrence- og Forbrugerstyrelsen are currently conducting similar investigations.

The UK completed a market investigation following an Ofcom reference. That investigation recommended the CMA use its Digital Markets, Competition and Consumers Act powers to consider designating Microsoft and AWS with Strategic Market Status in relation to their respective digital activities in cloud services. However, no further steps have been taken by the CMA in this respect.

These parallel investigations across multiple jurisdictions suggest growing regulatory concern about competitive dynamics in cloud computing markets. The Commission's decision to launch formal DMA market investigations represents an escalation in European regulatory scrutiny of cloud infrastructure providers.

The investigations also examine whether existing legal frameworks adequately address cloud market concerns. Some analysts suggest that existing frameworks like the Data Act may better address specific concerns about licensing practices and data portability requirements, according to submissions to the DMA review consultation.

Following complaints in 2021 and 2022, Microsoft changed its license conditions in October 2022. Those complaints were subsequently withdrawn. Google filed a further complaint against Microsoft in September 2024. The Microsoft Teams case investigated whether Microsoft's cloud-based product Teams was tied to its productivity software. That case was resolved through Article 9 commitments offered by Microsoft.

Timeline

• November 2022: Digital Markets Act enters into force across European Union
• May 2023: Commission designates six major tech companies as gatekeepers including Amazon and Microsoft
• March 2024: DMA obligations become legally binding for designated gatekeepers
• April 2025: Commission fines Apple €500 million and Meta €200 million for DMA violations
• July 2025: Commission launches public consultation on first DMA review
• September 2025: CMA designates Google with Strategic Market Status following investigation
• November 18, 2025: European Commission opens three market investigations on cloud computing services under Digital Markets Act

Summary

Who: The European Commission initiated investigations into Amazon Web Services and Microsoft Azure, working with the Netherlands Authority for Consumers and Markets through a joint investigative team. The investigations affect businesses and consumers across the European Union that depend on cloud computing infrastructure.

What: Three separate market investigations examine whether Amazon Web Services and Microsoft Azure should be designated as gatekeepers under the Digital Markets Act, and whether existing DMA obligations can effectively address practices limiting competitiveness and fairness in the cloud computing sector. The investigations will assess market positions, interoperability obstacles, data access conditions, service bundling practices, and contractual terms.

When: The European Commission announced the investigations on November 18, 2025. The Commission aims to conclude the gatekeeper designation investigations within 12 months, with a six-month compliance period if designation occurs. The investigation on DMA application to cloud markets will produce a final report within 18 months.

Where: The investigations apply across all 27 European Union member countries, examining cloud computing services provided to businesses and consumers throughout the region. The investigations cover cloud infrastructure essential for AI development and digital services across European markets.

Why: Cloud computing serves as backbone infrastructure for digital services and artificial intelligence development. The Commission seeks to ensure this strategic sector operates under fair, open and competitive conditions. Recent market analyses indicate Microsoft Azure and Amazon Web Services occupy very strong market positions, with features of the cloud sector potentially reinforcing these positions and limiting competitiveness through interoperability obstacles, data access restrictions, service tying and bundling, and imbalanced contractual terms.