EU Regulators Target AWS, Azure, and Google Cloud in DMA Probe
The cloud wars are about to get a whole lot more interesting, as EU regulators sharpen their focus on potential anti-competitive practices by the giants of the industry. Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are now squarely in the crosshairs of the Digital Markets Act (DMA), a move that could reshape the landscape of cloud computing in Europe and beyond.For years, these three behemoths have dominated the cloud, offering everything from basic storage to complex AI services. But their sheer size and market power have raised concerns about fair competition, data portability, and the potential for vendor lock-in.The European Commission is now evaluating whether the dominance of AWS, Azure, and Google Cloud gives them undue control over the market. Specifically, regulators are scrutinizing areas like data portability – how easily customers can move their data between providers – interoperability with rival platforms, and restrictions on tying and bundling of services.

These investigations are a direct result of the DMA, which aims to curb the power of digital “gatekeepers” and promote a more level playing field. Until now, cloud providers have largely avoided DMA scrutiny, partly because their primary customers are enterprises, making it harder to quantify “individual users” in the way social media platforms are measured.

Why Now? The Outage Factor

A series of high-profile cloud outages over the past year has underscored the risks of relying too heavily on a small number of providers. Remember when AWS suffered a 15-hour outage that crippled services for Apple and McDonald’s? Or when a Microsoft Azure glitch disrupted airline check-ins? Google Cloud hasn’t been immune either, experiencing downtime for major clients.

The EU worries that further consolidation in the cloud market could amplify the impact of any future disruptions. A single point of failure could have catastrophic consequences for businesses and consumers alike.

The EU isn’t alone in its scrutiny. Back in July 2025, the UK’s Competition and Markets Authority (CMA) concluded a market investigation that revealed “significant unilateral market power” for both AWS and Microsoft.

The CMA’s report highlighted practices like charging hefty “egress fees” for customers to move their data out of the cloud. They also pointed to poor interoperability and licensing policies that made it more expensive to run Microsoft software on competing platforms.

As a result, both AWS and Microsoft were designated as having Strategic Market Status (SMS) under the UK’s new digital markets law, giving regulators the power to intervene when necessary.

If the European Commission determines that AWS, Azure, or Google Cloud fall under the DMA framework, they could face a raft of new legal obligations. These could include making it easier for customers to switch providers, share data, and unbundle services. Noncompliance could result in hefty fines.

The stakes are high. These investigations could force the cloud giants to rethink their business practices and foster a more competitive environment. But the impact could extend far beyond Europe, potentially influencing cloud regulations around the world.

As the cloud continues to underpin more and more of our digital lives, ensuring fair competition and resilience will be critical. The EU’s probe is a bold step in that direction, and the industry will be watching closely to see what comes next.

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