EU targets Amazon Web Services and Microsoft Azure under Digital Markets Act

The European Commission announced that Amazon Web Services (AWS) and Microsoft Azure are likely to be designated as "gatekeepers" under the Digital Markets Act (DMA). The move would subject the two cloud providers to stricter obligations and possible fines of up to 10% of worldwide turnover, or 20% for repeat offences, because the Commission says their services dominate the market, create high switching costs and lock‑in customers, especially as demand for AI‑driven cloud capacity surges.

Both companies have expressed displeasure: AWS warned the rules could hinder investment and innovation, while Microsoft criticised the Commission for not applying the same treatment to Google Cloud. The investigation, opened in November, also highlights concerns about interoperability, conditioned data access, and the broader implications for organisations that store cultural and scholarly material in the cloud, raising questions about digital autonomy and the control of essential digital infrastructure.