The European Commission is gearing up for a formal investigation into Amazon Web Services, Microsoft Azure, and Google Cloud. This probe, set to launch soon, aims to check if these major players hold too much market power under the Digital Markets Act and need new rules to boost fair competition.
Officials worry about market concentration, customer lock-in, and recent outages that hit global services hard. The move comes amid growing calls for better oversight in the cloud sector, where a few companies dominate.
Why the EU is Targeting Cloud Providers
Cloud computing powers much of the digital world, from business apps to online storage. The European Commission wants to see if giants like AWS, Azure, and Google Cloud create unfair barriers for smaller rivals.
Recent reports show these three control over 70 percent of the European cloud market. This dominance raises red flags about competition and resilience.
Experts point to past issues, such as high switching costs that keep customers stuck. If the probe finds problems, new rules could force easier data moves between providers.
The Digital Markets Act, in place since 2023, targets big tech to prevent abuse of power. So far, it has hit companies like Apple and Meta, but cloud services are a new focus.
Key Concerns Driving the Investigation
A string of major outages has spotlighted risks in the concentrated cloud market. For example, an AWS downtime in October 2025 lasted 15 hours and disrupted services for big names like Apple and airlines.
Microsoft Azure faced a glitch that affected global check-ins, while Google Cloud had issues impacting high-profile clients. These events showed how one failure can ripple worldwide.
Regulators are looking at:
- Data portability: How easy it is for users to move data to competitors.
- Interoperability: Whether systems work well with other platforms.
- Bundling practices: Rules against forcing customers to buy tied services.
Market data reveals AWS leads with about 32 percent global share, followed by Azure at 23 percent and Google Cloud at 12 percent. This setup limits choices and innovation, critics say.
Potential Rules and Obligations Ahead
If classified under the DMA, these providers might face strict duties. The goal is to open up the market and protect users from lock-in.
Possible changes include bans on favoring their own services and requirements for fair pricing. Fines could reach up to 10 percent of global revenue for non-compliance.
| Cloud Provider | Global Market Share (2025) | Key Strength |
|---|---|---|
| AWS | 32% | Vast infrastructure |
| Microsoft Azure | 23% | Enterprise integration |
| Google Cloud | 12% | AI and data tools |
This table highlights the top players and their edges, based on industry reports. Smaller firms struggle to compete against such scale.
Businesses using these services could see benefits like lower costs and more options. However, the providers argue their size brings efficiency and security.
UK Actions and Global Trends
The UK is also cracking down. In July 2025, the Competition and Markets Authority wrapped up a probe finding AWS and Microsoft hold significant power.
They noted expensive fees and barriers that hurt competition. New UK laws under the Digital Markets, Competition and Consumers Act will add more oversight from 2026.
Globally, similar scrutiny is rising. In the US, antitrust cases target tech giants, while Asia sees probes into data practices.
These efforts tie into broader trends, like the push for digital sovereignty in Europe. Recent events, such as cyber threats, underline the need for diverse providers.
What This Means for Businesses and Users
For companies relying on cloud services, the probe could mean easier switches and better deals. Startups might get a fairer shot at growth.
Consumers benefit indirectly through more stable services and innovation. However, big tech firms warn that heavy rules could slow progress in areas like AI.
Analysts predict the investigation will wrap up by mid-2026, with possible appeals dragging it longer. In the meantime, providers are ramping up lobbying efforts.
Looking Ahead in Cloud Regulation
This EU move signals a tougher stance on tech dominance. It builds on past wins, like forcing Apple to open app stores.
As cloud demand grows with AI and remote work, balanced rules are key. Watch for updates as the probe unfolds.
Share your thoughts on how this might change the cloud landscape. Have you faced issues with these providers? Comment below and spread the word to keep the conversation going.
