BRUSSELS—In a bold escalation of its regulatory oversight, the European Commission has initiated three market investigations into cloud computing services under the Digital Markets Act (DMA), zeroing in on industry giants Amazon Web Services (AWS) and Microsoft Azure. Announced on November 18, 2025, these probes aim to determine whether these platforms should be classified as ‘gatekeepers’ and if the DMA’s framework adequately addresses anti-competitive practices in the sector. The move underscores Europe’s intensifying efforts to rein in Big Tech’s influence and foster a more level playing field for smaller providers.

Drawing from recent announcements, the investigations stem from concerns over market dominance, interoperability issues, and potential barriers to competition. According to the European Commission’s official statement, two of the probes will specifically evaluate AWS and Azure for gatekeeper status, while the third will assess broader sector practices that may hinder fairness. This comes amid growing calls from European businesses for secure, sustainable cloud options, as highlighted in ongoing policy discussions.

The DMA’s Expanding Reach

The Digital Markets Act, enacted to curb the power of tech behemoths, designates certain platforms as gatekeepers if they meet specific criteria like significant market impact and user base. As reported by Reuters, the Commission’s actions target how AWS and Microsoft might be leveraging their positions to stifle competition, potentially leading to mandates for greater openness and data portability. ‘The European Commission has launched three market investigations on cloud computing services by Amazon and Microsoft under the Digital Markets Act (DMA), which aims to curb the power of Big Tech and ensure a level playing field for smaller rivals,’ notes Reuters.

Industry observers point to longstanding grievances, including high switching costs and vendor lock-in, which have plagued European enterprises. TechRepublic details how these investigations could force changes in licensing practices and interoperability standards, potentially reshaping the continent’s digital infrastructure. ‘European Commission reveals the initiation of three market investigations concerning cloud computing services under the landmark Digital Markets Act,’ states TechRepublic, emphasizing the focus on AWS and Azure.

Gatekeeper Criteria Under Scrutiny

To be deemed a gatekeeper under the DMA, a service must provide a core platform service in at least three EU member states, have more than 45 million monthly active users, and exceed certain revenue thresholds. The Commission’s probe into AWS and Azure will examine these metrics closely, as outlined in their press release. Computer Weekly reports that ‘The European Commission has launched three investigations into how the continent’s cloud market operates, with two focused specifically on Microsoft and Amazon Web Services,’ per Computer Weekly.

Microsoft’s Azure, integrated deeply with its productivity suite, has faced prior antitrust scrutiny, while AWS dominates with its vast ecosystem. The investigations could result in obligations like fair access terms for rivals, echoing past DMA enforcements against companies like Apple and Google. Morningstar captures Microsoft’s response: ‘A spokesperson for Microsoft said … market inquiry, and that Europe’s cloud sector is innovative and highly competitive,’ from Morningstar.

Broader Market Implications

The third investigation delves into whether the DMA sufficiently tackles systemic issues in cloud computing, such as data sovereignty and security risks. Posts on X (formerly Twitter) from sources like First Squawk highlight real-time sentiment: ‘EU COMMISSION LAUNCHES MARKET INVESTIGATIONS ON CLOUD COMPUTING SERVICES UNDER DIGITAL MARKETS ACT; PROBES AWS AND MICROSOFT AZURE.’ This reflects immediate market reactions, with shares of affected companies experiencing volatility.

European policymakers have long advocated for homegrown alternatives, citing U.S.-based providers’ vulnerabilities to foreign laws like the CLOUD Act. A 2021 Eurostat report, shared on X by EU_Eurostat, noted that 42% of EU enterprises used cloud computing, with adoption varying widely across countries—75% in Sweden and Finland, but only 13% in Bulgaria.

Industry Reactions and Defenses

AWS has pushed back, asserting the sector’s dynamism. ‘We’re confident that when the European Commission considers the facts, it will recognize what we all see–the cloud computing sector is extremely dynamic, with companies enjoying lots of choice, unprecedented innovation opportunity, and low costs,’ an AWS spokesperson told Morningstar. Similarly, Microsoft emphasized competition in its statement to the same outlet.

Smaller European providers stand to benefit, potentially gaining from enforced interoperability. The Star reports on the probes’ potential to impose curbs, stating ‘(Reuters) -The European Commission has launched three market investigations on cloud computing services by Amazon and Microsoft under the …,’ via The Star.

Historical Context of EU Cloud Regulation

These investigations build on prior EU initiatives, including the 2020 Data Strategy and Gaia-X project for sovereign cloud infrastructure. A WIRED post on X from March 2025 discussed EU firms ditching U.S. clouds due to security fears: ‘Companies in the EU are starting to look for ways to ditch Amazon, Google, and Microsoft cloud services amid fears of rising security risks from the US.’

France leads in datacenter operations among European providers, as noted in a 2022 X post by Yann Lechelle: ‘Interesting fact: France’s cloud providers are leading Europe in terms of operated datacenters (after the US CSPs, and followed by Switzerland CSPs).’ This underscores the push for regional alternatives amid geopolitical tensions.

Potential Outcomes and Challenges

If designated gatekeepers, AWS and Azure could face stringent rules, including bans on self-preferencing and requirements for seamless data migration. EU Today describes the move as ‘Brussels has launched formal investigations into three major cloud-computing services under the recently adopted Digital Markets Act,’ per EU Today.

Challenges include enforcement timelines—the DMA allows up to five months for gatekeeper assessments—and potential appeals. Morgan Stanley’s July 2024 analysis, shared on X by Beth Kindig, projected the European data center market growing 6x to 38 GW by 2035, driven by hyperscaler demand, highlighting the stakes involved.

Economic Stakes in Cloud Dominance

The probes align with broader EU competitiveness concerns, as outlined in Mario Draghi’s September 2024 report, posted on X by Patrick Collison: ‘Mario Draghi’s new report on EU competitiveness doesn’t mince words. “Across different metrics, a wide gap in GDP has opened up between the EU and the US, driven mainly by a more pronounced slowdown in productivity growth in Europe.”‘ Cloud innovation is key to closing this gap.

Analysts warn that over-regulation could stifle investment, yet proponents argue it’s essential for sovereignty. RTE reports ‘The European Commission has launched three market investigations on cloud computing services by Amazon and Microsoft under the Digital Markets Act (DMA),’ via RTE.

Looking Ahead: Innovation vs. Regulation

As the investigations unfold, stakeholders anticipate consultations with industry players. Windows Forum notes ‘The European Commission has opened a trio of market investigations into Amazon Web Services (AWS) and Microsoft Azure under the Digital Markets Act (DMA),’ from Windows Forum.

Ultimately, these probes could redefine Europe’s cloud landscape, balancing U.S. dominance with local innovation. Recent X posts from MarketNewsFeed and others echo the urgency, signaling a pivotal moment for digital policy in the region.