EU Labels AWS, Microsoft Azure as Gatekeepers Under Digital Markets Act
The EU designates AWS and Microsoft Azure as gatekeepers under the Digital Markets Act.
Why it matters: For in-house and external legal teams, this designation signals stricter compliance demands and heightened scrutiny of platform-driven business models, affecting contracts, data policies, and regulatory risk management.
- The European Commission classifies AWS and Microsoft Azure as gatekeepers under the Digital Markets Act.
- Gatekeepers control digital infrastructure, raising market dominance and competition concerns.
- Platform models depend on network effects and big data, influencing multiple industries.
- Legal teams must adapt to new rules targeting platform control and promoting market fairness.
The European Commission has officially declared Amazon Web Services (AWS) and Microsoft Azure as "gatekeepers" under the Digital Markets Act (DMA). This status identifies them as companies with significant control over core digital infrastructure, limiting user choice and competition.
Regulators note that gatekeepers hold entrenched market power and impose high switching costs, which restricts competitors and impacts how digital services operate. According to the European Commission, the DMA aims to curb unfair practices and restore competitive balance in digital markets dominated by a few large platforms.
Platform companies like AWS and Microsoft Azure leverage multi-sided business models driven by network effects and big data, reshaping sectors from finance to retail. A policy analysis from CIGI highlights that relying on such central infrastructure concentrates decision-making power and raises systemic risks for the broader digital ecosystem.
Legal professionals, particularly in-house counsel and compliance teams, face new challenges navigating these rules. They must review service agreements, data governance policies, and risk frameworks to align with DMA requirements that regulate gatekeeper operations and protect fair market access.
The Brookings Institution underscores that as these platforms consolidate power, their practices diverge from the open internet principles once foundational to digital innovation. This transformation demands careful legal scrutiny of platform governance, competition law, and data protection obligations.
Staying informed about DMA developments and regulatory actions by the European Commission is essential for law firms and corporations managing digital service relationships. The act represents a significant regulatory shift targeting entrenched gatekeepers to promote market fairness and accountability.
By the numbers:
- 4 gatekeepers designated by the EU — including AWS and Microsoft Azure under the Digital Markets Act
- €7 billion annual revenue threshold — criterion for gatekeeper status in the DMA
- 24 months — typical timeframe for gatekeepers to comply with the DMA after designation
Yes, but: While the DMA sets clearer rules for gatekeepers, enforcement mechanisms are still being refined, and legal teams should anticipate evolving regulatory guidance.
What's next: The European Commission will monitor gatekeeper compliance and may impose fines or corrective measures for breaches, with legal implications for service providers and users.