Microsoft and Amazon may face tough EU rules—big implications for AI and cloud
NewsSaturday, 20 June 2026 at 09:00
The European Commission is turning up the heat on Microsoft and Amazon. Brussels is weighing whether Microsoft Azure and Amazon Web Services (AWS) should be formally designated as gatekeepers under the EU Digital Markets Act (DMA). If that happens, both companies would face far tougher rules on competition, interoperability, and data access. The Commission says the cloud platforms may have become so dominant that they now act as critical gateways for companies building digital services and AI applications.
The stakes are high for Europe’s AI ecosystem. Nearly every major AI startup, software vendor, and enterprise in Europe runs fully or partly on Azure or AWS. The debate therefore touches not just the cloud market, but the future trajectory of AI in Europe. In some ways, it mirrors efforts like the European AI Act.
Why is the EU probing Microsoft Azure and AWS?
In late 2025, the European Commission launched three separate DMA market investigations into cloud computing. Two of them focus specifically on AWS and Microsoft Azure. Brussels wants to determine whether these platforms, even if they don’t automatically meet standard DMA thresholds, still function as dominant gatekeepers in Europe’s digital economy.
The Commission isn’t looking only at market share. It’s also weighing network effects, vertical integration, business customer dependency, and the role of cloud platforms as the base layer for other digital services.
Today, cloud infrastructure underpins:
- Generative AI models
- Enterprise software
- Data platforms
- Government services
- AI agents and automation
- Machine learning environments
That’s why Brussels increasingly views cloud as strategic infrastructure—on par with search engines, app stores, and social networks, sectors already covered by the DMA.
What could change for Microsoft and Amazon?
A gatekeeper label would force Microsoft and Amazon to open up their clouds and play fairer with rivals.
The Commission is examining, among other things:
- Interoperability between different cloud platforms.
- Barriers to switching providers.
- Data access for business customers.
- Service bundling practices.
- Contract terms that could stifle competition.
That last issue has been simmering for years. Competitors like Google Cloud and several European providers have repeatedly complained about AWS and Azure’s dominance. National regulators, including the Dutch Authority for Consumers and Markets (ACM), are also involved.
Why does this matter for AI?
AI runs on cloud muscle. Training and operating modern AI models demands massive compute, storage, and specialized chips like Nvidia GPUs.
Microsoft Azure is OpenAI’s key infrastructure partner. Amazon, meanwhile, has invested billions in Anthropic and uses AWS to distribute its generative AI services.
The result: a handful of cloud giants not only supply the infrastructure, but increasingly own the AI platforms, models, and developer tools on top. European policymakers worry this concentration of power could choke innovation and competition.
Stricter DMA rules could benefit European AI firms, reducing lock-in, simplifying cloud migration, and improving interoperability—ultimately lowering dependence on a single vendor.
Digital sovereignty takes center stage
The debate now extends beyond competition. In Brussels, concern is growing over Europe’s heavy reliance on U.S. tech companies for critical digital infrastructure.
Cloud and AI are increasingly treated as strategic sectors—akin to energy, telecoms, and semiconductors. Several EU policy initiatives on digital sovereignty aim to carve out more space for European alternatives and a fairer playing field for local providers.
That also explains why, alongside the AWS and Azure probes, the Commission opened a third DMA investigation to assess whether current rules are even sufficient for the cloud’s unique competition issues. New, additional obligations aren’t off the table.
When will a decision land?
The European Commission expects to conclude its investigations into AWS and Microsoft Azure by November 2026 at the latest. If both platforms are designated as gatekeepers, they would then have six months to comply with DMA obligations.
That timeline makes 2026 a pivotal year for Europe’s cloud and AI markets.
The outcome could define how open Europe’s AI infrastructure becomes, how much power U.S. hyperscalers keep, and how much room is created for new European cloud and AI players.
Bottom line
The DMA probe into Microsoft Azure and Amazon AWS is about more than competition law. The Commission is laying the groundwork for new rules governing the infrastructure that powers almost all modern AI.
If Brussels declares Azure and AWS official gatekeepers, it could trigger the biggest reset of Europe’s cloud market since hyperscale platforms emerged. For AI companies, software developers, and enterprises that depend on the cloud, the impact could be profound.
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