What regulators are doing
European regulators are finalizing a probe under the Digital Markets Act to decide whether Azure and Amazon Web Services meet the law's criteria. The draft decision is planned to be published in November, though that schedule could change, and people describing the outcome spoke anonymously because the investigation is confidential.
Why the cloud is in the crosshairs
The anticipated designations would mark increased EU regulatory attention on the cloud industry, which has been unsettled by several major outages that disrupted services worldwide. EU policymakers have broadly aimed to reduce strategic risks tied to heavy dependence on non-EU cloud providers.
What being designated would require
If AWS and Azure are designated under the DMA, they will have six months to comply with multiple obligations. Those obligations include requirements to support interoperability and measures intended to limit customer lock-in and self-preferencing.
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The backdrop and what it means for your portfolio
The European Commission said, "We have sent preliminary findings to Amazon and Microsoft in June 2026. The assessments are ongoing and no final decision has been taken." A Microsoft spokesperson referred to a previous company statement saying Microsoft remains in constructive engagement with regulators, and an AWS spokesperson pointed to an earlier company statement that said European customers now have greater choice among cloud providers than before. The DMA has provoked criticism from U.S. President Donald Trump and has made transatlantic trade negotiations more complex, and it has already produced three fines on U.S. firms. For investors, these moves could change how cloud providers operate in Europe and create new compliance costs and operational shifts that could affect cloud exposure in your portfolio.
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