EU Investigates Amazon and Microsoft Cloud Services for Potential Antitrust Violations

BRUSSELS, November 18, 2025 – The European Commission has launched three market investigations into cloud computing services offered by Amazon (AMZN.O) and Microsoft (MSFT.O), under the Digital Markets Act (DMA). The probes aim to assess whether the tech giants’ cloud platforms should be designated as gatekeepers and whether the DMA can effectively address anticompetitive practices in the cloud sector.

The DMA, which took effect in 2022, seeks to curb the power of Big Tech, ensure a level playing field for smaller competitors, and regulate companies that provide core platform services. Under the act, companies with over 45 million monthly active users and a market capitalization exceeding €75 billion ($86.87 billion) can be designated as gatekeepers. Such firms must ensure service interoperability with rivals and are prohibited from favoring their own services. Violations can incur fines of up to 10% of annual global turnover.

Details of the European Commission Probes

The three investigations include:

1. Two probes to determine whether Amazon Web Services (AWS) and Microsoft Azure qualify as gatekeepers in the cloud sector.
2. A third investigation to evaluate whether the DMA’s rules adequately address anticompetitive practices in cloud computing.

AWS is currently the largest cloud provider globally, followed by Microsoft Azure and Google Cloud (Alphabet Inc.), making the EU’s scrutiny particularly significant for the international cloud market.

Reactions from Amazon and Microsoft

A Microsoft spokesperson stated the company is ready to contribute fully to the EU inquiry. Meanwhile, an AWS spokesperson expressed caution, noting that designating cloud providers as gatekeepers may risk stifling innovation and increase costs for European companies.

EU antitrust chief Teresa Ribera emphasized the commission’s commitment to monitoring fast-evolving cloud practices, saying:

“We will also look at whether the DMA’s existing rules need to be updated so Europe can keep pace with fast-evolving practices in the cloud sector.”

Potential Implications

If the European Commission determines that AWS and Azure qualify as important gateways, the companies could face stricter obligations, including:

• Ensuring service interoperability with competitors
• Prohibiting self-preferencing of their own services
• Complying with regulatory reporting requirements and possible fines for non-compliance

The commission aims to conclude the investigations within 12 months, signaling a proactive approach to regulating cloud services and protecting competition within the EU digital market.

Broader Context

The probes reflect ongoing tensions between the EU and U.S. tech companies, particularly amid lobbying efforts from U.S. tech giants and debates over the global regulatory landscape for cloud services. As cloud computing becomes increasingly integral to business operations, these investigations could reshape competitive dynamics in Europe’s digital economy.

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Key Takeaways

• The EU has launched three investigations into Amazon AWS and Microsoft Azure under the Digital Markets Act.
• Probes assess whether the cloud platforms should be designated as gatekeepers and if DMA rules address anticompetitive practices.
• AWS and Azure are the largest and second-largest global cloud providers, respectively.
• Companies could face fines of up to 10% of annual global turnover if violations occur.
• EU aims to complete investigations within 12 months, potentially reshaping Europe’s cloud computing market.