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The European Union (EU) has proposed bringing the cloud computing services of Amazon and Microsoft under tougher digital competition regulations, citing their dominant positions in the sector.
The move follows an investigation launched in November into whether Amazon Web Services (AWS) and Microsoft Azure should be designated under the bloc’s Digital Markets Act (DMA), despite not meeting the law’s standard user thresholds.
EU Antitrust Commissioner Teresa Ribera said cloud services are becoming increasingly important to Europe’s digital economy, making it necessary to ensure the market remains competitive and functions properly.
“These services will only continue to grow in importance, which is why it is essential that we ensure a well-functioning and competitive market,” EU antitrust commissioner Teresa Ribera said.
According to the European Commission, AWS and Azure appear to hold significant and durable market positions that could justify their inclusion under the DMA, which is designed to regulate large digital platforms considered “gatekeepers.”
The DMA generally applies to services with more than 45 million monthly active users and 10,000 business users annually in the EU.
However, the Commission said the law can also cover companies deemed to have a substantial impact on the market even if they fall short of those thresholds.
The proposal could heighten tensions with Washington, where the administration of President Donald Trump has repeatedly criticised the EU’s digital regulations, arguing they unfairly target American technology firms.
Both companies have been given the opportunity to respond to the Commission’s preliminary findings before a final decision is taken later this year.
AWS hit out at the preliminary findings, arguing that it overlooks the range of cloud services available to European customers.
The company said it faces strong competition across Europe and noted that the industry is already governed by extensive regulations.
“We will continue to engage with the commission to reach the right outcome for customers and Europe’s digital future,” an AWS spokesperson said.
Microsoft said it would continue engaging with EU authorities but expressed concern that the Commission had not launched a similar probe into Google’s cloud business.
The company argued that overlooking the growing influence of Google Cloud and its AI platform Gemini could distort competition.
US cloud providers currently account for roughly two-thirds of the EU cloud services market. While Google Cloud ranks as the third-largest provider in Europe, the Commission has not initiated a comparable investigation into the company.
The Digital Markets Act imposes obligations on major technology firms, requiring them to open their platforms to competitors and give users greater control over pre-installed services and applications.
Amazon’s Marketplace and Microsoft’s operating system are already subject to DMA requirements.
The European Commission is also reviewing whether the legislation requires further updates to address evolving digital markets.
