The European Commission has issued a preliminary view that Amazon Web Services and Microsoft Azure should be designated as gatekeepers under the Digital Markets Act for their cloud computing services. Although neither service meets the regulation's quantitative designation thresholds, the Commission's initial assessment concludes that both platforms function as important gateways connecting businesses with customers across the European Union.

The preliminary findings describe AWS and Azure as the largest and second-largest cloud computing services in the EU. The Commission points to their substantial revenue, operational capacity, and investment levels, which it says have significantly exceeded those of competing providers. It also highlights their extensive user bases, the presence of customer lock-in and switching costs, and broad ecosystems that reinforce their market position. The assessment further notes that Amazon and Microsoft are already designated as gatekeepers for other services.

The Commission also considers the companies' artificial intelligence offerings and partnerships when evaluating the cloud market. According to the preliminary assessment, these AI capabilities have become an important consideration in cloud purchasing decisions. As demand for cloud-related services grows alongside AI adoption, the Commission believes AWS and Azure appear to retain much of that additional demand within their own ecosystems. It also states that both providers have maintained strong and durable positions in the EU cloud computing sector over many years.

The investigation forms part of the Commission's broader effort to ensure that cloud computing services operate within fair and competitive market conditions. It notes that cloud infrastructure supports digital services across industries including manufacturing, retail, healthcare, and financial services, while also serving as the foundation for developing and operating AI services. The Commission opened market investigations into Amazon and Microsoft on November 18, 2025, gathering input from business users, competitors, and other stakeholders. At the same time, it launched a separate investigation examining whether existing Digital Markets Act obligations adequately address practices affecting competition in the cloud sector.

The preliminary findings do not determine the final outcome of the investigations. Amazon and Microsoft may review the Commission's investigation materials and submit written responses before any decision is reached. If the Commission ultimately confirms its preliminary position, both companies would be designated as gatekeepers for their cloud computing services and would receive six months to bring those services into compliance with the obligations established under the Digital Markets Act.

📊 What This Means (Our Analysis)

The Commission's preliminary position signals that Digital Markets Act assessments extend beyond numerical thresholds and can also consider market influence, competitive dynamics, and the practical role a service plays for businesses. That approach reflects a broader evaluation of how digital platforms operate within the market rather than relying solely on user metrics.

The announcement also emphasizes the growing connection between cloud infrastructure and artificial intelligence services. By considering AI capabilities alongside cloud operations during its assessment, the Commission highlights how evolving technology offerings may shape competition and regulatory oversight within digital markets covered by the Digital Markets Act.

📌 Our Take: The outcome of these investigations could further define how cloud computing services are evaluated under the Digital Markets Act in the future.