Microsoft, Amazon cloud arms set to face deeper scrutiny under EU’s tech rules

Microsoft's Azure and Amazon Web Services (AWS) are set to be designated under the European Union’s (EU) stringent rulebook for Big Tech. Regulators are finalizing a Digital Markets Act (DMA) investigation into the two cloud service providers, which is expected to conclude that Azure and AWS meet the requirements to fall under the scope of the DMA's rules, according to sources familiar with the matter.

The decision is scheduled for release in November, though the timing could still change. This move signals a reinforcement of the EU's regulatory oversight of the cloud sector, which has faced increasing uncertainty due to significant outages affecting global services. Striving to address strategic vulnerabilities resulting from over-reliance on non-EU cloud providers, once designated, AWS and Azure will have six months to comply with various obligations, including interoperability requirements and restrictions on customer lock-in and self-preferencing.

The European Commission has communicated that preliminary findings were shared with Amazon and Microsoft in June 2026, and the assessments are ongoing, with no final decision yet made. Microsoft and AWS have both expressed their engagement with regulators and highlighted the increased choices available to European customers in the cloud market, respectively.

The EU's DMA has, however, faced criticism from US President Donald Trump and complicated transatlantic trade discussions, leading to three fines against American companies so far. Apple and Meta received initial penalties for violating the law, with fines totaling 500 million euros and 200 million euros, respectively, while Alphabet's Google was fined 890 million euros earlier this year.