Microsoft, Amazon cloud arms set to face deeper scrutiny under EU’s tech rules
They will have to comply with interoperability requirements and curbs on customer lock-in and self-preferencing
MICROSOFT’S Azure and Amazon Web Services (AWS) are set to be designated under the European Union’s strict rulebook for Big Tech.
Regulators are putting the final touches on a Digital Markets Act (DMA) investigation into the two firms that will conclude that Azure and AWS meet the requirements to fall under the scope of its rules, according to people familiar with the matter. The decision is set to be issued in November but still in draft form and the timing could slip, they said, asking not to be identified because the process is private.
The move marks a strengthening of the EU’s regulatory scrutiny of the cloud sector. The industry has faced uncertainty due to several major outages that have wrought havoc across global services, and Europe has broadly sought to address strategic vulnerabilities that arise from relying too heavily on non-EU cloud players.
Once designated, AWS and Azure will have six months to fall into line with a range of obligations, including interoperability requirements and curbs on customer lock-in and self-preferencing.
“We have sent preliminary findings to Amazon and Microsoft in June 2026. The assessments are ongoing and no final decision has been taken,” the European Commission said.
A spokesperson for Microsoft pointed to an earlier statement in which the company said it continues to engage with regulators constructively. An AWS spokesperson highlighted an earlier statement, which said customers in Europe have more choice in cloud than ever before.
The EU’s DMA has, however, drawn the ire of US President Donald Trump and complicated transatlantic trade talks. So far, the rules have resulted in three fines against American companies. Apple and Meta were the first recipients of penalties for breaching the law, with fines of 500 million euros (US$562 million) and 200 million euros respectively, while earlier this year Alphabet’s Google was fined a total of 890 million euros. BLOOMBERG
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