The European Commission (EC) has designated cloud providers Amazon and Microsoft as gatekeepers under the Digital Markets Act (DMA).The EC published its preliminary findings today, June 25, noting that it has designated the companies as gatekeepers despite their cloud services, Amazon Web Services (AWS) and Microsoft Azure, "not meeting the DMA's quantitative thresholds for designation."This is because the cloud platforms "have achieved significant turnover, and their operational capacity and investments seem to have significantly outpaced those of competitors." What's more, the commission said they both "have vast and entrenched user bases and appear to benefit from lock-in effects and high switching costs, in addition to a large ecosystem."The EC also notes that the two companies' AI offerings have become a "decisive factor in cloud procurement." It said: "AI is significantly increasing the demand for cloud-related services, [and] AWS and Azure appear to retain a large proportion of this increased demand within their respective ecosystems."Finally, the EC suggests that the two hold an "entrenched and durable position" in the EU market.An investigation into cloud service providers in the EU was launched in November 2025 with a focus on Microsoft and Amazon, and another to look at concerns around competition in the European cloud market.The current result is merely a preliminary finding, and the EC stated that this does not "prejudge the outcome of an investigation.""Cloud services have become a cornerstone of Europe’s economy - and a prerequisite for AI - with over half of EU businesses now relying on them, combined with record investment in public cloud infrastructure. Given their central role in Europe's digital future, these services must operate in fair, open, and competitive markets that foster trust and secure Europe’s tech sovereignty," said Henna Virkkunen, EVP for tech sovereignty, security, and democracy.Amazon and Microsoft now have the chance to review the findings and reply in writing.An AWS spokesperson told DCD via email: "The Commission's preliminary findings disregard the breadth of cloud services available to European customers and risk deterring European investment and innovation. AWS faces healthy competition, and customers across Europe have more choice, lower prices, and greater flexibility than ever before."The EU already has comprehensive cloud regulation through the Data Act, and adding another heavy layer of overlapping regulation under the DMA undermines European competitiveness and access to cutting-edge information technology. We will continue to engage with the Commission to reach the right outcome for customers and Europe's digital future.”DCD has reached out to Microsoft for comment.Should the preliminary findings be confirmed, Amazon and Microsoft would have six months to ensure full compliance of their designated cloud computing services with the DMA's obligations.Earlier this month, the EC published the "Tech Sovereignty Package," including the "Cloud and AI Development Act," which the Commission says aims to simultaneously triple data center capacity across Europe over the next five to seven years, and will "introduce a single EU-wide framework to assess cloud and AI sovereignty, while keeping most of our market open to like-minded partners."This would, in effect, limit US hyperscalers' ability to secure contracts, and is expected to apply to sensitive sectors such as banking, energy, and healthcare.