EU Cloud Probe Puts Microsoft and Amazon Under the Microscope

TLDR

• The European Commission is expected to announce as early as next week that Microsoft Azure and Amazon Web Services likely qualify for oversight under the Digital Markets Act.
• A final decision is expected by end of 2025, though timing may shift.
• If designated, both services would face new rules on interoperability, customer lock-in, and self-preferencing.
• The probe follows a November 2024 statement from the EU that both companies hold “very strong positions” in cloud computing.
• Several major outages involving AWS and Azure in recent years have added pressure on regulators to act.

The European Union is moving closer to placing Microsoft’s Azure and Amazon Web Services under its Digital Markets Act framework. The European Commission could announce its preliminary findings as early as next week, according to Bloomberg.

Microsoft Corporation, MSFT

The DMA targets large digital platforms with what the EU calls “gatekeeper” power. If Azure and AWS are formally designated, they would be required to follow a set of rules designed to promote fair competition.

What Designation Would Mean

Under the DMA, both cloud services would need to meet requirements around interoperability. They would also face restrictions meant to prevent customer lock-in and self-preferencing — the practice of favoring their own products over rivals.

A final decision is expected before the end of 2025. However, sources familiar with the matter say the timing could still change.

The review process started in November 2024 when the European Commission said Microsoft and Amazon held very strong positions in the cloud market. That statement opened a formal review.

The DMA was created to stop anti-competitive behavior among major tech platforms in Europe. It has already been applied to companies like Apple and Google in other areas.

Outages Added Fuel to the Fire

Scrutiny of the two cloud giants has grown partly due to high-profile outages. AWS suffered a roughly 15-hour disruption that impacted Apple, McDonald’s, and Epic Games. A separate Azure outage in October knocked out Alaska Airlines check-in systems and disrupted voting at the Scottish Parliament.

These incidents drew attention to how much of the digital economy depends on a small number of cloud providers.

Neither Microsoft nor Amazon responded to requests for comment at the time of reporting.

The Commission has not yet published its formal findings. If the preliminary conclusions hold, both companies will have the chance to respond before any final ruling is made.

The cloud computing sector has become one of the most closely watched areas by EU regulators, given the pace of growth and the number of businesses that rely on these services.

This investigation is part of a broader push by the EU to apply competition rules to the biggest players in digital infrastructure.

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