The European Commission has opened three market investigations into cloud computing services under the Digital Markets Act (DMA), marking a significant step in the EU’s effort to ensure fair and contestable digital markets. Two of the investigations focus on whether Amazon Web Services (AWS) and Microsoft Azure should be designated as gatekeepers, while a third examines whether the DMA’s current rules adequately address emerging competition concerns in the cloud sector.
Although AWS and Microsoft Azure do not currently meet the DMA’s quantitative thresholds for size, user numbers, and market position, recent analyses suggest that both services hold exceptionally strong positions and may function as important gateways between businesses and end users. The Commission will examine whether factors inherent to the cloud sector, including network effects, switching costs, interoperability constraints, and vertical integration, further reinforce the market power of these providers. Should the investigations conclude that AWS and Azure meet the DMA criteria for gatekeeper designation, their cloud services would be added to the list of core platform services already subject to obligations for Microsoft and Amazon. Both companies would then have six months to ensure full compliance with the DMA requirements.
In parallel, the Commission is conducting a broader investigation into whether the DMA’s existing obligations effectively address practices that may hinder competition or fairness in the cloud sector. The inquiry will consider issues such as obstacles to interoperability between cloud services, restrictions or conditionality on business users’ access to data, tying and bundling of services, and potentially imbalanced contractual terms. The findings will inform a final report expected within 18 months, which may propose updates to DMA obligations for cloud services through a delegated act under Articles 12 and 49 DMA.
The Commission aims to conclude the investigations into AWS and Azure within 12 months. If either provider is designated as a gatekeeper, a six-month compliance period will follow. The broader investigation on the DMA’s application to cloud markets will provide recommendations for potential regulatory refinement, shaping how the EU addresses competition and fairness in this strategically important sector.
The DMA establishes a framework to ensure that digital markets remain fair, open, and contestable. Companies identified as gatekeepers must comply with obligations designed to prevent unfair practices and safeguard the ability of business users and consumers to compete, innovate, and switch providers. Even if a platform does not meet the DMA’s quantitative thresholds, the Commission may designate it as a gatekeeper where qualitative evidence indicates it controls an important gateway position. Investigations assess factors such as user numbers, network effects, economies of scale and scope, switching costs, and the company’s corporate structure. The current investigations are being conducted in cooperation with the Dutch Authority for Consumers and Markets (ACM), following established DMA procedures.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, emphasized the strategic importance of cloud computing for Europe’s competitiveness and resilience, stating that cloud services should grow on fair, open, and competitive terms. Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, highlighted the role of cloud computing in enabling AI development and innovation, underscoring the need for a fair and open environment that fosters trust and secures Europe’s technological sovereignty.