EU Set to Designate AWS and Azure as Cloud Gatekeepers
The European Commission is expected to declare Amazon Web Services and Microsoft Azure as gatekeepers under the Digital Markets Act, imposing interoperability and lock-in rules. A preliminary decision is due next week, with a final decision by year-end. Non-compliance could result in fines of up to 20% of global turnover.
Key points
- The European Commission is set to designate Amazon Web Services and Microsoft Azure as gatekeepers under the Digital Markets Act.
- A preliminary decision is expected next week, with a final decision by the end of 2026.
- Designated gatekeepers will face obligations including interoperability requirements, curbs on customer lock-in, and restrictions on self-preferencing.
- Non-compliance can result in fines of up to 20% of global turnover for repeated breaches.
The European Commission's move comes after a formal market investigation into the cloud market, which was triggered by several major outages in 2023. An AWS outage lasting 15 hours disrupted operations at Apple, McDonald's, and Epic Games, while Azure troubles prevented Alaska Airlines check-ins and halted votes in the Scottish Parliament. The Digital Markets Act already applies to six designated gatekeepers, but this would be the first time cloud infrastructure is included. The Commission's decision is expected to have significant implications for the cloud industry, with analysts warning of increased costs and complexity for businesses.
Sources
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