European Commission Preparing to Designate Amazon and Microsoft as Cloud Gatekeepers

The European Commission has expressed a preliminary position to designate AWS (Amazon Web Services) and Azure (Microsoft) as Gatekeepers under the Digital Markets Act (DMA).

If this designation is finalized, the companies concerned will be subject to the following obligations:

• Ensuring Interoperability
• Expanding data accessibility
• Complying with regulations for fair competition
• Fines of up to 10% of global revenue for non-compliance

The European Commission determined that both services serve as key gateways connecting businesses and customers within the EU, and exert market dominance through a strong user base and Lock-in effects. Even though the two companies fall short of quantitative criteria such as user numbers, their significant market influence was cited as grounds for the decision.

In response, Microsoft countered by emphasizing that market competition is fierce and that Google Cloud's influence should not be overlooked, while AWS expressed opposition, stating that the regulation could hinder investment and innovation in Europe. On the other hand, groups such as the Open Cloud Coalition welcomed the move, saying such regulation is necessary for the growth of enterprise AI.