EU moves to label AWS and Microsoft Azure as gatekeepers under the Digital Markets Act

The European Commission announced its intention to designate Amazon Web Services (AWS) and Microsoft Azure as "gatekeepers" under the EU Digital Markets Act (DMA). The move targets the two largest cloud‑computing services in the bloc, citing their dominant market positions, extensive user bases, and the risk of lock‑in and high switching costs. If the designation is confirmed, the companies would face DMA‑mandated obligations such as a ban on bundled offers, a requirement to ensure data interoperability and portability, and a six‑month deadline to implement the changes. AWS and Azure will be allowed to contest the decision before it becomes final.

Separately, the EU Data Act, which becomes applicable on 12 September 2025, introduces specific rules to ease cloud‑provider switching. The regulation obliges cloud and edge‑computing providers to remove commercial, technical and contractual obstacles that hinder customers from moving their data and digital assets. Providers must cooperate in good faith, guarantee reasonable assistance during migration, and limit exit costs. Standard transition periods are set at 30 days’ notice with a maximum two‑month handover, extendable to up to seven months where technical feasibility requires it.