EU Proposes Gatekeeper Status for AWS (1st) and Azure (2nd) in Cloud Market
AMZN•EU antitrust regulators identified AWS as the largest and Azure as the second-largest cloud platforms in Europe, recommending gatekeeper designation under bloc rules due to significant turnover and operational capacity. Amazon warned this could deter investment and innovation in Europe, while Microsoft highlighted Google Cloud’s rising influence to argue for a more comprehensive market assessment.
1. Preliminary Findings and Market Share
The EU’s preliminary assessment found AWS holds the largest market share in European cloud computing, with Azure ranking second by revenue and capacity. Regulators cited rapid AI-driven demand and ecosystem lock-in as key factors underpinning their gatekeeper proposal.
2. Regulatory Implications for AWS and Azure
Designation as a gatekeeper would subject AWS and Azure to strict rules on data interoperability, anti-preference measures and reporting obligations. Non-compliance could trigger fines of up to 10% of global turnover or corrective orders, raising compliance costs and operational complexity in the EU.
3. Amazon and Microsoft Pushback
Amazon argued the assessment overlooks the breadth of European cloud suppliers and risks deterring investment and innovation. Microsoft contended that excluding Google Cloud and Gemini from the analysis creates an unbalanced view of competitive dynamics, and both firms plan to engage with regulators before final decisions.
