The European Commission has opened sweeping investigations into the dominance of U.S. cloud providers, launching three separate market probes targeting Amazon Web Services (AWS) and Microsoft Azure under the bloc’s Digital Markets Act (DMA). The move represents a significant regulatory push to rein in Big Tech’s influence in Europe’s critical cloud infrastructure.
Two of the investigations will assess whether AWS and Azure should be designated as “gatekeepers”—a classification under the DMA that would subject them to strict rules. The third inquiry is broader, examining whether the current DMA framework is robust enough to address potential cloud-specific competition issues.
According to the Commission, both providers “occupy very strong positions” in Europe’s cloud market, acting as critical gateways between businesses and customers. If formally designated as gatekeepers, the firms would face stringent obligations including limits on self-preferencing and requirements to make their services interoperable with rivals.
Cloud services have become indispensable to modern economies, and the DMA was designed to prevent dominant players from abusing their power. But applying gatekeeper rules to cloud is uncharted territory. The DMA traditionally uses user numbers to trigger regulation — a metric that doesn’t easily map to enterprise-to-cloud relationships.
This initiative is fueled in part by concerns that European cloud providers are struggling to compete with U.S. hyperscalers. Data from market analysts show that American firms now account for roughly 70% of Europe’s cloud market, while European-based providers collectively hold a very small share.
Over the years, smaller European cloud vendors have frequently warned about high switching costs, technical lock-ins, and pricing practices that entrench U.S. giants. An OECD report published earlier this year highlighted how egress fees, data portability challenges, and volume discounts contribute to competitive imbalances.
Not everyone supports the regulation, however. Some cloud operators and industry groups have cautioned that the probe could disproportionately penalize international providers — even as Europe tries to boost its own digital sovereignty.
From the U.S. side, Microsoft has expressed willingness to cooperate, while Amazon warns that gatekeeper designation could undermine innovation and raise costs for European businesses.
The European Commission plans to conclude its investigations within 12 months. If the probe results in the gatekeeper status, it could reshape how cloud computing works in Europe — forcing U.S. firms to open up parts of their infrastructure and business models to rivals and regulators.
