EU targets AWS, Azure as tech gatekeepers

What happened

The European Commission said Amazon Web Services and Microsoft Azure, the two largest cloud providers globally, should be designated gatekeepers under the Digital Markets Act, which sets out rules to ensure a level playing field. The preliminary finding came after a seven-month investigation.

Why it matters

Gatekeeper status means these cloud services would face new restrictions and obligations designed to limit the power of Big Tech companies in Europe. Amazon argued the assessment overlooks the range of cloud services available to European customers and could discourage European investment and innovation. Microsoft raised concerns that ignoring Google Cloud's growing power could harm competition.

What to watch

Amazon and Microsoft will likely respond formally to the preliminary findings; the designation is not yet final and the companies may challenge the regulators' conclusions.