The European Commission has taken a significant step towards regulating cloud computing services, issuing preliminary findings that Amazon Web Services (AWS) and Microsoft Azure should be designated as gatekeepers under the Digital Markets Act (DMA). This move would subject the two cloud giants to strict obligations aimed at curbing market power, including limits on self-preferencing and requirements for interoperability and data portability. The designation marks a significant expansion of the DMA, which has so far focused on consumer-facing digital platforms.

What Happened

The European Commission's competition authority launched an investigation into AWS and Azure in late 2025, examining whether they hold an "entrenched and durable position" in the market for cloud infrastructure and platform services. The probe concluded that both companies meet the quantitative thresholds laid out in the DMA, but more critically, they hold a qualitative gatekeeper role that stifles competition. Regulators cited the scale, financial strength, and entrenched customer bases of AWS and Azure, as well as high switching costs and customer lock-in effects.

The Commission's preliminary findings follow a seven-month investigation into the cloud computing market. The regulators pointed to the growing influence of AI-related products, services, and partnerships offered by both companies, noting that these factors are increasingly shaping enterprise cloud purchasing decisions. AWS and Azure have objected to the assessment, with Amazon arguing that it overlooks the range of cloud providers available to European customers and could discourage investment and innovation in the region.

Background and Context

The Digital Markets Act (DMA) is a landmark tech regulation aimed at curbing market power and promoting competition. So far, EU regulators have targeted core platform services such as search engines, social media networks, and app stores to rein in Big Tech. Extending the DMA to cloud infrastructure would mark a significant expansion into a sector seen as critical to AI.

Cloud computing has become increasingly important for businesses across the region, with more than half of EU companies now relying on cloud infrastructure. Regulators also highlighted the growing role of cloud platforms in supporting artificial intelligence development and deployment. The Commission's tech chief, Henna Virkkunen, emphasized that "cloud services have become a cornerstone of Europe's economy - and a prerequisite for AI."

Why It Matters to the Industry

The designation of AWS and Azure as gatekeepers under the DMA would subject them to strict obligations aimed at curbing market power. This includes limits on self-preferencing, requirements for interoperability, and data portability. The move aims to boost competition, lower switching costs, and prevent a cloud-driven lock-in of emerging AI markets.

The implications for the adult industry are significant. Cloud computing services like AWS and Azure provide the infrastructure for many adult-industry platforms and operators. A more competitive market would give these companies more freedom when choosing cloud and AI services, potentially leading to better prices, improved performance, and greater innovation.

What Comes Next

The Commission's preliminary findings trigger a defence phase, allowing Amazon and Microsoft to contest the findings before the regulator issues a final decision in the coming months. A formal designation would start the clock on compliance, with AWS and Azure facing strict obligations aimed at curbing market power.

Key Facts

  • The European Commission has issued preliminary findings that Amazon Web Services (AWS) and Microsoft Azure should be designated as gatekeepers under the Digital Markets Act (DMA).
  • The designation would subject AWS and Azure to strict obligations aimed at curbing market power, including limits on self-preferencing and requirements for interoperability and data portability.
  • Regulators cited the scale, financial strength, and entrenched customer bases of AWS and Azure as key reasons for considering the designation.
  • The Commission's preliminary findings follow a seven-month investigation into the cloud computing market.
  • AWS and Azure have objected to the assessment, with Amazon arguing that it overlooks the range of cloud providers available to European customers.