The European Union has identified Microsoft Azure and Amazon Web Services as the largest cloud providers in the bloc, flagging both for enhanced oversight under the Digital Markets Act.
European regulators have released preliminary findings designating Azure as the largest cloud service in the EU, with AWS ranked second. The classification puts both platforms in line for stricter compliance requirements under the bloc's Digital Markets Act (DMA).
The DMA, which entered into force in March 2024, targets large digital platforms deemed "gatekeepers" that control access to critical infrastructure or markets. Services meeting specific thresholds face heightened obligations around interoperability, data access, and fair competition practices.
The preliminary findings suggest that Azure and AWS, which together dominate European cloud infrastructure, will face mandatory compliance measures. These could include requirements to provide better interoperability with competing services, restrictions on self-preferencing practices, and enhanced transparency obligations.
The EU's identification comes as part of broader regulatory efforts to reduce tech concentration in Europe. By designating these services as gatekeepers, the bloc gains authority to impose remedies if companies engage in anti-competitive behavior.
Azure's top ranking reflects Microsoft's expansion of cloud infrastructure across European data centers. AWS, despite holding the global cloud market lead, ranks second in EU-specific assessments according to the regulator's preliminary analysis.
Companies designated as gatekeepers have obligations including maintaining fair access to their platforms for competitors, enabling data portability for users, and refraining from unfair bundling practices. Violations can trigger significant fines, potentially reaching up to 10 percent of global annual revenue.
The preliminary findings are subject to consultation and may be adjusted before final designation. Both Microsoft and Amazon are expected to respond to the findings during the regulatory review period.
The move reflects the EU's strategic approach to regulating cloud infrastructure, treating it as essential infrastructure rather than optional commercial services. European governments and enterprises have expressed concerns about dependency on US-based cloud providers, adding geopolitical dimensions to the regulatory push.
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