Phoenix 24
Europe is turning cloud infrastructure into a strategic battleground.
Brussels, June 2026
The European Commission has concluded preliminarily that Amazon Web Services and Microsoft Azure should be classified as gatekeepers under the Digital Markets Act, a decision that could impose stricter obligations on the two largest cloud providers operating in Europe. The proposed designation would extend the bloc’s most powerful technology competition framework into cloud computing for the first time. Brussels argues that these services have become indispensable to European businesses, public institutions and artificial intelligence development. Their expanding influence is now being treated as both a market concentration problem and a potential risk to Europe’s technological sovereignty.
The preliminary findings follow a seven-month investigation into the structure of the European cloud market. Regulators examined the scale of AWS and Azure, their financial resources, operational capacity, customer bases and integration with artificial intelligence services. The Commission concluded that both platforms occupy positions capable of influencing how companies store information, deploy software and adopt advanced digital tools. Customers may also face substantial technical and financial obstacles when attempting to transfer their operations to another provider.
Amazon and Microsoft do not necessarily meet every conventional numerical threshold normally used to identify gatekeepers under the Digital Markets Act. The Commission nevertheless believes their strategic importance and entrenched market positions justify applying the rules. This approach demonstrates that Brussels is willing to examine economic reality rather than rely exclusively on fixed turnover or user figures. Cloud services may now be regulated according to the influence they exercise across the wider digital economy.
A final gatekeeper designation would subject AWS and Azure to obligations intended to prevent unfair commercial advantages. The companies could be prohibited from favoring their own products over competing services operating through their platforms. They might also be required to improve interoperability, simplify the transfer of data and make it easier for customers to move applications between cloud providers. These measures seek to reduce dependency on a single supplier and lower the costs associated with changing platforms.
Data portability has become especially important because cloud migration can be expensive and technically complex. Companies often build applications around proprietary tools, databases and artificial intelligence services supplied by one provider. Once those systems become deeply integrated into everyday operations, transferring them elsewhere may require substantial redesign. This creates a lock-in effect that can preserve market dominance even when competing providers offer lower prices or stronger sovereignty guarantees.
The Commission’s initiative is closely connected to the rapid expansion of artificial intelligence. Modern AI systems require enormous computing capacity, advanced chips, extensive storage and access to specialized cloud platforms. AWS and Azure provide much of that infrastructure while also developing their own AI tools and partnerships. Their influence therefore extends beyond hosting data and increasingly shapes which companies can develop, deploy and scale artificial intelligence products.
European officials argue that cloud infrastructure must operate in a fair and open market because more than half of EU businesses now depend on these services. The concentration of computing power in a small number of foreign-controlled companies creates strategic concerns extending beyond competition policy. Governments worry that legal disputes, geopolitical tensions or external political pressure could affect access to essential digital systems. The cloud is consequently being treated in a manner increasingly comparable to energy networks, telecommunications and other critical infrastructure.
The sovereignty debate does not mean that the European Union intends to exclude every non-European technology provider. Brussels is attempting to create different levels of assurance based on the sensitivity of the information and operations involved. Ordinary commercial workloads may continue using international platforms, while national security, law enforcement and other critical functions could require providers meeting stricter European control standards. The central objective is to ensure that institutions retain authority over their data, encryption, operations and recovery procedures.
American legislation remains an important source of European concern. United States authorities can, under certain circumstances, demand information from American companies even when that data is stored through overseas subsidiaries. European policymakers fear that physical storage inside the EU may not be sufficient when the provider remains subject to foreign legal jurisdiction. Genuine sovereignty therefore requires more than locating servers on European territory.
Amazon rejected the Commission’s assessment and argued that Europe already has extensive cloud regulation. The company warned that adding another layer of obligations could discourage investment, reduce access to advanced technology and weaken European competitiveness. AWS also maintained that customers can choose from a broad range of providers. From its perspective, the cloud market remains dynamic and cannot be evaluated in the same way as more established digital platforms.
Microsoft also questioned the preliminary findings, particularly the Commission’s treatment of Google Cloud. The company argued that Google’s expanding cloud and artificial intelligence influence should not be overlooked. This response introduces another competitive dimension because regulation applied only to AWS and Azure could alter the balance among the three largest global providers. Brussels must demonstrate that its conclusions reflect objective market conditions rather than selective enforcement.
The two companies will have an opportunity to challenge the findings before the Commission reaches a final decision. They may submit evidence about competition, customer mobility and the potential economic consequences of gatekeeper status. The regulatory process could continue for several months. Any final designation would likely be followed by detailed discussions over how the obligations should operate technically.
The initiative forms part of a broader European strategy to reduce dependence on American and Chinese technology. The EU has introduced plans covering semiconductors, artificial intelligence, open-source software, data centers and sovereign cloud infrastructure. It wants to strengthen European providers while maintaining access to the global technologies required by businesses. That balance is difficult because aggressive restrictions could protect sovereignty while simultaneously limiting innovation and increasing costs.
European cloud companies may benefit if the rules make migration easier and reduce the commercial advantages of larger rivals. However, regulation alone cannot close the technological and investment gap separating regional providers from American hyperscalers. Europe will also need competitive infrastructure, skilled personnel, reliable energy supplies and substantial private financing. Sovereignty cannot be created solely through restrictions on foreign companies.
The Commission’s move signals that cloud computing is no longer being viewed as an invisible technical service. It is the foundation on which artificial intelligence, public administration and much of the modern economy increasingly operate. By targeting AWS and Azure, Brussels is asserting that control over this foundation carries responsibilities proportionate to its power. The final decision will reveal how far Europe is prepared to go in converting digital sovereignty from political language into enforceable market rules.
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