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EU targets Amazon, Microsoft cloud units for Big Tech "gatekeeper" rules

The European Union has proposed that Amazon and Microsoft's cloud computing services should fall under the Digital Markets Act's "gatekeeper" regulations, potentially requiring them to adhere to stricter rules on data usage and interoperability by 2026.

Background

The EU's Digital Markets Act (DMA) designates certain large tech platforms as "gatekeepers" — meaning they must follow stricter rules on how they operate, such as not favoring their own services. So far the rules have applied mainly to consumer-facing platforms (like Facebook, Google Search, Apple's App Store). This article reports that EU regulators are now considering adding Amazon Web Services (AWS) and Microsoft Azure — the two dominant cloud-computing divisions — to that list. Cloud computing is the infrastructure that powers websites, apps, AI models, and corporate data storage. AWS and Azure together control a majority of the global cloud market. Bringing them under the DMA would force them to make it easier for customers to switch providers, use competing services, and avoid unfair pricing. This matters because it would mark a major expansion of the EU's regulatory reach into the backbone of the internet economy, affecting everything from startup costs to how large companies run their tech operations.