European Union regulators are moving to apply strict gatekeeper obligations to Amazon Web Services and Microsoft Azure, the world’s top cloud providers.

The preliminary finding under the Digital Markets Act would limit self-preferencing and mandate interoperability and data portability. The expansion beyond search and social media into cloud computing marks a critical push as over half of EU businesses now rely on cloud services for AI and digital growth.

EU tech chief Henna Virkkunen said fair, open markets are essential for Europe’s tech sovereignty. Amazon says the move ignores the breadth of cloud options available and risks deterring investment. Microsoft warned that overlooking Google Cloud’s growing power could tilt the market.

The Commission cited the two firms’ significant turnover, entrenched user bases, lock-in effects, and AI partnerships as decisive factors. A final decision is due in the coming months after the companies respond.