THE European Commission has tentatively designated Amazon Web Services (AWS) and Microsoft Azure as "gatekeepers" under the Digital Markets Act (DMA), requiring them to enhance compliance with European regulations. This designation is prompted by their significant market influence and the lock-in effects they create for customers. Despite not meeting certain user metrics outlined by the DMA, their dominance in the cloud market invites scrutiny.
Should the designation be confirmed, AWS and Azure must improve interoperability and data access, while also facing potential fines for non-compliance. Both companies have expressed opposition, claiming that the regulatory actions could hinder investment and innovation. They argue that the current cloud market is competitive and that existing regulations are sufficient.