The EU cloud gatekeeper rules just landed on Amazon and Microsoft‘s cloud businesses. The European Commission reached the preliminary finding on June 25, 2026, after a seven-month investigation.
As a result, regulators concluded that AWS and Azure should become gatekeepers under the Digital Markets Act. The designation marks a first for Brussels, since cloud infrastructure has never faced such rules before.
Until now, the Commission targeted only consumer platforms like search engines and app stores. Therefore, every business running workloads on AWS or Azure should take notice today.
Brussels Applies EU Cloud Gatekeeper Rules to AWS and Azure First
To reach the finding, the Commission relied on a qualitative test rather than standard thresholds. Neither AWS nor Azure meets the DMA’s usual quantitative bar, yet regulators still flagged both platforms.
Because AWS ranks as the EU’s largest cloud service and Azure ranks second, both draw heavy scrutiny. Both also act as an important gateway between businesses and their customers.
Beyond scale, entrenched user bases and steep switching costs fed into the finding. Large surrounding ecosystems then compounded regulators’ concerns about lasting market power.
Meanwhile, AI procurement emerged as a key driver behind the decision. AI tools increasingly shape how companies pick providers now.
Why Regulators Are Targeting Cloud Now
Cloud services now anchor Europe’s digital economy in a major way. In fact, over half of EU businesses depend on cloud infrastructure daily. Given this reliance, the Commission views cloud as a prerequisite for AI development.
Because of this, regulators worry that lock-in effects trap customers with one provider. Meanwhile, record investment keeps flowing into public cloud infrastructure across the industry. Against this backdrop, Teresa Ribera, the Commission’s Executive Vice-President, called for a fairer market.
The Obligations That Would Follow a Confirmed Designation
Once confirmed, the designation triggers specific duties for both companies. First, gatekeepers must stop favoring their own services over rivals. Second, they must open technical interfaces so customers can connect across platforms.
Third, they must honor data portability rights carrying real legal weight. Accordingly, vendor-specific APIs would need open interoperability mechanisms alongside them. These export rights would then exceed today’s discretionary data tools by a wide margin.
How EU Cloud Gatekeeper Rules Affect Businesses Running Workloads Today
Right now, egress fees trap many companies inside existing cloud contracts. Specifically, AWS charges $0.09 per gigabyte for outbound data transfers, and Azure charges $0.087. Moving fifty terabytes therefore costs between $3,500 and $7,000 in fees alone, before engineering costs.
Once the designation holds, interoperability rules could ease these switching barriers. As a result, European alternatives like OVHcloud, Hetzner, and Scaleway could grow more viable. Businesses could then gain stronger leverage when renegotiating existing cloud contracts.
The Timeline, the Pushback, and What Comes Next
Looking ahead, AWS and Microsoft now have until September 2026 to respond formally. Both companies can submit written arguments and request a hearing. After that, the Commission must reach a final decision by November 2026.
In the meantime, both companies are already pushing back against the preliminary findings. Microsoft argues that regulators are ignoring Google Cloud and Gemini’s growing power. AWS, meanwhile, contends that regulators overlook the full breadth of Europe’s cloud market.
Still, penalties for non-compliance remain steep across the board. Fines can reach 10% of global turnover, or 20% for repeat violations. Businesses relying on AWS or Azure should therefore watch this process closely.
